The US Justice Department has initiated a review to determine if Harvard University’s China-linked financial aid programs unfairly disadvantage American students, reflecting ongoing tensions between the administration and the institution.

According to a statement, the Department’s Civil Rights Division is examining whether Harvard’s practices involving financial aid tied to Chinese sources may exclude citizens of other nationalities, including US citizens.

Harvard asserted it does not engage in unlawful discrimination based on race, ethnicity, or national origin in its aid allocation processes.

A university representative noted the institution is evaluating the DOJ’s findings and will collaborate with authorities to address the concerns.

Universities are legally obligated to disclose foreign donations exceeding $250,000 annually. Harvard has maintained compliance with this requirement for years, stating it fulfills its legal obligations.

Earlier this year, the Trump administration faced resistance from Harvard over broader investigations into areas such as diversity policies and academic freedom, which the university called retaliatory.

The latest investigation specifically alleges that Harvard accepted funds from Chinese sources with restrictions, using them to provide financial aid to foreign students, potentially at the expense of American applicants.

Last month, a court prevented the administration from enforcing a policy banning foreign students from Harvard, though the lawsuit targeted broader immigration rules.

China’s embassy in Washington urged that academic and educational exchanges remain unimpeded, emphasizing mutual benefits in US-China cooperation.

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