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Harmeet Dhillon probes Harvard over preferential scholarships, aid of foreign students over Americans

"Schools cannot take federal dollars and then turn around and accept money from foreign sources to give financial aid that deliberately excludes American citizens..."

"Schools cannot take federal dollars and then turn around and accept money from foreign sources to give financial aid that deliberately excludes American citizens..."

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Ari Hoffman Seattle WA
The US Department of Justice has launched a civil rights investigation into Harvard University over allegations that the Ivy League school accepted hundreds of millions of dollars from China-based donors while administering financial aid programs that may unlawfully favor foreign students over American citizens.

The Justice Department's Civil Rights Division announced Monday that it has opened a Title VI compliance review to determine whether Harvard's financial aid practices violate federal law by discriminating based on national origin. The investigation stems from Harvard's acceptance of foreign donations that allegedly require scholarship funds to be directed toward students from specific countries.



"Every American student should have an equal opportunity to compete for college scholarships, grants, and other kinds of financial aid and benefits," Assistant Attorney General Harmeet K. Dhillon said in a statement. "Schools cannot take federal dollars and then turn around and accept money from foreign sources to give financial aid that deliberately excludes American citizens — doing so is illegal, and we will stop it wherever we find it."

According to the Justice Department, Harvard has disclosed receiving nearly $4.5 billion in foreign funding, more than any other American university. Of that total, more than $630 million came from China-based sources. Those disclosures, required under Section 117 of the Higher Education Act, prompted the Civil Rights Division to review the university's compliance with federal anti-discrimination laws.

In a letter sent Monday to Harvard General Counsel Jennifer O'Connor, the department said it is investigating whether the university accepted gifts and grants from Chinese sources that required scholarship funds to be awarded with "preference given to students from particular countries." The department said Harvard then appears to have distributed those funds to foreign students, "presumably Chinese," based on national origin, potentially disadvantaging students of other national origins, including American citizens.

The investigation will examine whether those practices violate Title VI of the Civil Rights Act of 1964, which prohibits recipients of federal financial assistance from discriminating based on race, color, or national origin. Harvard receives federal funding from the Department of Justice and other federal agencies, making it subject to those requirements.

"If we conclude that Harvard is not violating Title VI, we will notify you that we are closing the investigation," the letter states. However, if investigators determine the university is in violation, the department said it will first seek voluntary compliance before pursuing enforcement measures that could include suspending or terminating federal funding or filing a civil lawsuit.

As part of the investigation, the Justice Department ordered Harvard to produce documents related to Chinese-funded gifts, grants, and scholarship programs by July 31, including records describing donor restrictions, internal policies governing those funds, and communications about how the money was administered.

The department also requested detailed data on students who received financial aid from the Chinese-funded programs, including their country of origin, nationality, citizenship status, amount of aid received, school of enrollment, and graduation status. Investigators cited federal regulations allowing the Justice Department to obtain protected student information for civil rights enforcement purposes.

The department’s request for information identified several China-linked donors and organizations whose contributions are under review, including China Evergrande Group, Jiangsu Industrial Technology Research Institute, Nanjing University of Information Science and Technology, the Hong Kong Jockey Club Charities Trust, and The University of Hong Kong.

The department said the investigation focuses specifically on whether restrictions attached to those foreign donations resulted in scholarships or financial aid programs that unlawfully favored students on the basis of national origin. Harvard has been instructed to cooperate fully with the review while investigators determine whether the university's practices comply with federal civil rights law.
 

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