DOJ probes Harvard over Chinese-donor scholarships excluding Americans

The Justice Department announced Monday a new compliance review into Harvard University's handling of foreign donations, specifically targeting what it calls Harvard's "China-based financial aid programs." According to Justice Department officials, Chinese donors have given money to Harvard to support financial aid programs limited to students from certain countries, and the agency contends this restriction could constitute illegal discrimination based on country of origin.

Harmeet Dhillon, who leads the department's Civil Rights Division, stated: "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." The agency emphasized that it "has not reached any conclusions" and did not specify which individual scholarship programs are being targeted.

Federal disclosures show that Harvard has accepted $630 million（約1000億円） from Chinese sources over a period of decades, as part of approximately $4.5 billion（約7200億円） in total foreign funding. A specific example cited in the article involves a 2014 donation of $15 million（約24億円） by Pan Shiyi and Zhang Xin, co-founders of the real estate company SOHO China, which was explicitly designated to provide financial aid for Chinese students. That gift generated criticism in China from those who viewed it as a betrayal to support a foreign institution over Chinese universities.

Harvard distinguishes itself from the vast majority of American universities by offering need-based scholarships to international students on the same basis as U.S. students. While federal grants and aid are reserved for American citizens, Harvard maintains its own funding for foreign students, as documented on its financial aid website. In some cases, foreign donors have restricted their contributions for use by international students.

In response to the Justice Department's inquiry, Harvard stated: "Harvard follows the law for required reporting of donations and, consistent with our legal obligations under Title VI, does not unlawfully discriminate on the basis of race, ethnicity, or national origin in allocating financial aid." The university said it was reviewing the Justice Department notice. A spokesperson for the Chinese embassy in Washington, Liu Chang, responded that "China maintains that normal education and academic exchange should not be disrupted for political purposes." The Trump administration has pushed for greater transparency around foreign funding at universities, citing national security concerns about accepting donations from potential adversaries.

The investigation marks the Trump administration's latest line of attack against Harvard, following repeated federal inquiries into the university's admissions, enrollment of foreign students, and other practices. The DOJ's core argument—that accepting private donations restricted to foreign students amounts to discrimination against American applicants—represents an unusual legal theory: it frames private funding decisions, not federal funds, as a potential civil rights violation. This approach reflects the administration's stated concern that foreign funding, particularly from China, poses a national security and compliance risk.

Harvard's position has long distinguished it from most American universities. Unlike the vast majority of U.S. schools, Harvard extends need-based scholarships to international students on the same basis as domestic students and maintains its own funding pools for foreign applicants, meaning it does not rely solely on federal aid (which is reserved for Americans). The 2014 donation from Pan Shiyi and Zhang Xin exemplifies how Chinese donors have explicitly directed gifts toward Chinese students. The Justice Department's investigation challenges whether Harvard can legally accept such restricted gifts while also receiving federal dollars, though the agency has not yet specified which programs it is targeting or reached conclusions.