The US Justice Department announced on Monday it has started a review to examine whether certain Harvard University financial aid programs involve discrimination. This step marks the latest clash between the school and the Trump administration.

The department's Civil Rights Division stated it opened a compliance review of Harvard to assess if its China-focused financial aid programs and practices bar American citizen students from participation.

Harvard responded on Monday by affirming it does not unlawfully discriminate on the basis of race, ethnicity, or national origin in allocating financial aid.

A university spokesperson noted the Cambridge, Massachusetts-based Ivy League institution is examining the DOJ letter and plans to work with officials on the matter.

Federal law mandates that universities disclose foreign donations above $250,000 annually. Harvard has indicated it has submitted such reports for decades in line with legal requirements.

The school has described prior Trump administration actions as retaliatory measures tied to its stance on preserving institutional independence and constitutional protections.

Efforts to settle the administration's wider investigations into Harvard have not yet succeeded.

Trump Administration Pressuring Harvard Regarding Anti-Israel Demonstrations

The Trump administration has directed multiple probes and funding threats at Harvard and other leading universities over various topics.

These encompass pro-Palestinian demonstrations related to the Israel-Hamas conflict, diversity efforts, transgender guidelines, and climate initiatives. Advocacy groups argue the federal response endangers free expression, fair procedures, and scholarly independence.

In this review, the DOJ claimed Harvard seems to receive Chinese funding subject to conditions limiting its application.

Harvard appears to accept such funds and, following their limits, offers student aid to foreign students, likely Chinese, according to national origin, possibly at the expense of students from other backgrounds, including US citizens, the DOJ noted.

Last month, a federal court halted an administration plan to prevent foreign nationals from studying at Harvard.

China maintains that standard academic exchanges should remain free from political interference, with the embassy in Washington highlighting mutual benefits from education ties between the nations.