Trump administration places new restrictions on Harvard, citing financial concerns

US President Donald Trump's administration escalated its campaign against Harvard University on Friday, placing new restrictions on the Ivy League school's ability to access federal funds for student aid, citing concerns about the "financial position" of the oldest and richest university in the United States, Report informs via Reuters.

The Department of Education said it had placed Cambridge, Massachusetts-based Harvard on "heightened cash monitoring" status, a shift from the typical practice that will force it to use its own funds to disburse federal student aid before drawing down funds from the department.

Trump has cracked down on universities and threatened to cut federal funding over a range of issues like pro-Palestinian protests against US ally Israel's assault on Gaza, transgender policies, climate initiatives and diversity, equity and inclusion programs.

The Education Department is also seeking to have Harvard post a letter of credit for $36 million to ensure its financial obligations are met. In a letter, it said recent events raised concerns about Harvard's finances, citing its decision to issue bonds and conduct layoffs amid its conflict with the White House.

The Education Department said Harvard was at risk of losing access to all federal student aid funding by not complying with requests for records from its Office of Civil Rights, which a separate letter, warned may pursue an enforcement action.