What Heightened Cash Monitoring Means for Harvard

The U.S. Department of Education has placed Harvard University on heightened cash monitoring because it identified several financial triggers. Under this measure, Harvard is required to disburse federal student aid using its own funds and then submit requests for reimbursement. The Department has also demanded an irrevocable $36 million letter of credit as financial protection, and it cited an HHS finding under Title VI and Harvard’s bond issuance as reasons for concern.

A federal judge has already vacated earlier orders that froze more than $2 billion in Harvard research grants, although federal agencies are still working to restore payments. Harvard’s endowment is about $53 billion, yet university leaders say the federal actions have forced layoffs, hiring pauses, and budget cuts. While students will continue to be eligible for federal aid, the monitoring step means Harvard must front the money first, which increases short-term pressure on university finances. Therefore, administrators are planning budget changes and seeking legal remedies, and researchers remain worried about interrupted projects.