Flick International Conceptual illustration of a large Ivy League university building under stormy skies, representing Harvard University amid funding disputes.

Trump Administration Moves to Cancel Federal Contracts with Harvard Amid Controversy

Trump Administration Moves to Cancel Federal Contracts with Harvard Amid Controversy

The Trump administration has initiated actions to terminate existing federal contracts with Harvard University, as tensions escalate over the university’s handling of foreign students’ documentation.

According to a letter from the General Services Administration, expected to be sent on Tuesday, all federal agencies are being instructed to assess their contracts with Harvard, which amount to approximately $100 million. The letter suggests the agencies should explore alternative vendors.

Among the contracts under scrutiny, significant agreements include a $527,000 contract for Harvard ManageMentor licenses established in September 2021, a $523,000 research contract awarded in August 2023 focused on energy drinks and their long-term health effects, as well as a $39,000 contract for graduate student research services allocated in April 2025.

The New York Times was the first to report on the draft of this notification letter.

In addition to potential contract terminations, Harvard has filed a lawsuit in federal court to reinstate approximately $3.2 billion in federal grant funding that has been suspended by the administration since last month.

On Monday, President Donald Trump shared on TRUTH Social that he is contemplating reallocating three billion dollars in grant money from Harvard, which he claims has become “very antisemitic,” to trade schools across the nation. He emphasized that such a move would represent a significant investment for the USA.

Harvard’s legal challenges continued as it received a temporary restraining order on Friday, which currently prevents the government from revoking the institution’s certification in the Student and Exchange Visitor Program. This certification allows Harvard to enroll international students with F-1 or J-1 visas. According to the university, losing this certification would directly affect more than 7,000 visa holders, accounting for a considerable portion of the student body.

Another court hearing has been scheduled for Tuesday in Boston, where further deliberations will take place regarding the university’s legal standing.

In his critique of Harvard, Trump accused the institution of being “very slow” in submitting necessary documents related to foreign students. He implied that Harvard had strategically selected a favorable judge to support its position.

On Thursday, Department of Homeland Security Secretary Kristi Noem announced the revocation of Harvard’s certification. She stated that the university had repeatedly failed to comply with requests for information about foreign students, alleging that Harvard had fostered an unsafe environment for Jewish students, supported pro-Hamas sentiments, and enacted policies perceived as racially biased.

The DHS’s request for records encompasses all audio or video footage that Harvard might possess concerning threats to students or university employees, as well as information regarding any “deprivation of rights” issues and incidents of “dangerous or violent activity” involving nonimmigrant students over the last five years.

Noem has also demanded any disciplinary records and related footage from protests involving nonimmigrant students. As it stands, the DHS has deemed Harvard’s responses to these inquiries insufficient.

Implications of Contract Cancellations

The ramifications of this administrative request could be profound for Harvard, particularly concerning its financial ecosystem. The loss of contracts, particularly those amounting to millions, could put a strain on ongoing research projects and affect staff and resources associated with them. The university, known for its vast array of programs and academic initiatives, stands to lose not only funding but also prestige should these contracts be terminated.

Federal contracts generally encompass a wide array of services and research, and losing them could displace significant projects that are often at the forefront of academic and scientific inquiry. Harvard has advocated for its research integrity and historical prominence but now faces scrutiny that could reshape its operational landscape.

Moreover, this situation highlights the broader debate surrounding higher education institutions and their relationships with federal government funding. Critics argue that financial support should be contingent upon universities’ transparency and their commitment to engaging with federal oversight effectively.

As Harvard navigates this crisis, the intersection of politics, education, and funding presents complexities that may have lasting effects on its operational strategies. The unfolding circumstances may encourage other universities to re-evaluate their own contracts and compliance strategies, especially in an increasingly partisan climate.

Report contributed by Fox News’ Sarah Tobianski.