US President Donald Trump Targets Harvard University; Moves To Cancel Rs 850 Cr Federal Contracts: Reports

In a bold move, US President Donald Trump’s administration is working to terminate all remaining federal contracts with Harvard University, estimated to be worth $100 (Rs 850 crore approx.) million.

The action is part of an intensifying standoff between the federal government and the Ivy League institution over a range of concerns, from campus antisemitism to admissions and governance policies.

What’s Happening?

Federal Acquisition Service Commissioner Josh Gruenbaum has sent a directive to federal agencies asking them to assess and potentially end contracts with Harvard. The letter, obtained by Bloomberg News, states, “The U.S. General Services Administration (GSA) is assisting all federal agencies in a review for termination or transition of their federal government contracts with Harvard University and affiliates.”

The letter asks agencies to submit their intended actions for each relevant contract by June 6. Agencies are also encouraged to transition services to other vendors where necessary.

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Why Is This Happening?

The administration alleges that Harvard has not done enough to combat antisemitism on campus and has continued practices the government views as discriminatory, especially in admissions and campus life.

“Harvard has continued to engage in race discrimination, including in its admissions process and other areas of student life,” Gruenbaum’s letter reads.

In addition, the government has criticised the university for what it claims is a lack of concern for the safety and well-being of Jewish students. The administration also wants Harvard to allow for more ideological diversity on a campus it sees as dominated by liberal viewpoints.

Secretary of Homeland Security Kristi Noem added fuel to the controversy by stating that Harvard failed to comply with federal requests for information about foreign students, including protest involvement. “Harvard’s responses to the government’s requests… were insufficient,” she said.

What Else Has the Administration Done?

This latest step builds on a series of punitive actions against Harvard; $2.6 billion in federal research funding has already been suspended.

The administration attempted to block Harvard from enrolling international students, but the university obtained a court order pausing the ban. It has also demanded major institutional changes, such as overhauling governance, admissions, and faculty hiring practices, which it claims are discriminatory.

President Trump has gone further, hinting that even more funding could be redirected.

On social media, he wrote, “I am considering taking Three Billion Dollars of Grant Money away from a very antisemitic Harvard, and giving it to TRADE SCHOOLS all across our land. What a great investment that would be for the USA, and so badly needed!!!”

Why It Matters

Harvard, with an endowment of $53 billion, is not only the richest but also one of the most influential universities in the U.S. The administration’s efforts represent an unprecedented attempt to reshape university policy through financial leverage. 

Notably, Harvard has previously challenged some of these moves in court and is currently silent on the latest contract review order.