McMahon to Harvard: No More Federal Grants

by Emily Washburn | May 8, 2025 | Culture Education

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“Harvard should no longer seek grants from the federal government, [as] none will be provided,” Secretary of Education Linda McMahon wrote to the once-venerated college Monday.

The scathing letter illustrates officials’ determination to hold Harvard accountable for violating federal law, despite the college’s attempt to cling to tax dollars in court.

Background

McMahon’s Department of Education (DOE) is one of at least four federal agencies attempting to reduce public funding to Harvard over civil rights abuses, financial reporting failures and other violations of federal law.

In April, the federal government’s Joint Task Force to Combat Antisemitism, which includes DOE, froze $2.8 billion of Harvard’s grants and contracts for violating the civil rights of Jewish students.

Harvard promptly sued, arguing the government had violated the college’s right to free speech.

To learn more about the case, watch the Daily Citizen’s video here.

The Letter

McMahon’s letter informs Harvard the federal government will no longer issue the college grants, highlighting four failures making the school a poor investment.

She accuses Harvard of abandoning its academic standards, noting it no longer evaluates applicants’ standardized test scores and had to start an “embarrassing” remedial math class for some of its undergraduates.

Harvard has accumulated a private endowment of $53 billion, but McMahon argues it’s squandering its fortune. She pulls from analysis by Bill Ackman, a Harvard graduate and prominent hedge fund manager:

Ackman has called for the resignation of [Harvard Corporation president Penny Pritzker], noting that any serious corporation would have removed her after a litany of recent failings and that, incredibly, “Harvard is not in a good financial position.”

According to Ackman … Harvard’s so-called $53 billion endowment is “massively overstated as far as what it’s really worth,” and Harvard has irresponsibly taken out $8 billion in debt.

McMahon also excoriates Harvard for making hiring and admissions decisions based on race, sex and gender identity, despite the Supreme Court finding such policies discriminatory.

Harvard’s commitment to “Diversity, Equity and Inclusion” has been a frequent sticking point between it and the government. In letters sent on April 3 and 11, the Joint Task Force Combatting Antisemitism made adopting merit-based hiring and admissions policies a prerequisite of Harvard continuing to receive federal funds.

On April 28, McMahon’s DOE launched an investigation into Harvard Law Review for prioritizing authors and articles of preferred races, sexes and gender identities.

McMahon’s letter also provides additional context for a DOE order from April requiring Harvard to turn over records of foreign donations and students. In Monday’s letter, she writes:

[Harvard] has invited foreign students, who engage in violent behavior and show contempt for the United States of America, to its campus.

She continues:

Where do many of these “students” come from, who are they, how do they get into Harvard, or even into our country — and why is there so much hate?”

These statements, combined with the DOE’s interest in Harvard’s foreign donations, suggest McMahon and company believe other countries could be controlling the school and its policies.

These and “other concerning allegations,” McMahon argues, make Harvard ineligible for further federal grants. She concludes by restating the “common-sense-reforms” that would repair Harvard’s relationship with the government, including:

Adopting merit-based admissions and hiring standards.
Ending “unlawful programs that promote crude identity stereotypes.”
Creating a clear and consistent disciplinary process for students and student groups.
Cooperating with law enforcement and federal agencies.

Tax Status

McMahon implies Harvard’s tax-exempt status could be on the line, writing:

Harvard will cease to be a publicly funded institution and can instead operate as a privately funded institution, drawing on its colossal endowment and raising money from its large base of wealthy alumni.

In April, The Wall Street Journal reported the Trump administration had explored revoking Harvard’s tax-exemption, which “lets donors get tax deductions from contributions and keeps the university from paying taxes on any net earnings.”

Last week, President Trump floated the idea again over social media. Usually, such action occurs after an audit.

Why It Matters

The clash between Harvard and the federal government determines whether the school gets to keep $8.9 billion American tax dollars. The case could also establish: