Trump Administration Seeks to Cut Harvard’s $100 Million Contracts

May. 27, 2025, 12:59 pm ET

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  • The Trump administration is urging federal agencies to terminate contracts with Harvard University, valued at approximately $100 million.
  • The move follows concerns over Harvard’s admissions policies and its handling of foreign student records.
  • This action is part of a broader dispute involving over $2.6 billion in previously canceled federal research grants.

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Essential Context

The Trump administration has directed federal agencies to reassess and potentially cancel their remaining contracts with Harvard University. This decision comes amid ongoing disputes over Harvard’s admissions practices and its management of foreign student records.

Core Players

  • Donald Trump – President Trump, current Republican frontrunner
  • Harvard University – Prestigious Ivy League institution
  • General Services Administration (GSA) – Federal agency overseeing contract management
  • Josh Gruenbaum – Commissioner of GSA’s Federal Acquisition Service

Key Numbers

  • $100 million – Value of remaining federal contracts with Harvard
  • $2.6 billion – Previously canceled federal research grants
  • 56% – Admission rate for African American applicants in the top academic decile
  • 13% – Admission rate for Asian applicants in the top academic decile

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The Catalyst

The Trump administration’s move is a response to Harvard’s alleged failure to reform its admissions policies, which were deemed discriminatory by a recent Supreme Court ruling. Josh Gruenbaum, Commissioner of GSA’s Federal Acquisition Service, highlighted that Harvard continues to engage in racial discrimination in its admissions process and other aspects of student life.

Gruenbaum noted significant disparities in admission rates among different ethnic groups, with African Americans having a 56% admission rate, Hispanics at 31%, Whites at 15%, and Asians at just 13% for applicants in the top academic decile.

Inside Forces

Harvard has faced intense scrutiny over its admissions practices, particularly after the Supreme Court ruled that the university’s policies discriminate based on race. Despite this ruling, Harvard has shown no signs of reforming its admissions procedures, according to the administration.

The university’s responses to the administration’s demands for changes have been deemed inadequate, further escalating the conflict.

Power Dynamics

The Trump administration holds significant power in this dispute, given its control over federal contracts and funding. Harvard, on the other hand, is under pressure to comply with federal demands or risk losing substantial funding.

The General Services Administration (GSA) is playing a crucial role in directing federal agencies to reassess their contracts with Harvard.

Outside Impact

The cancellation of these contracts could have broader implications for higher education and research institutions. It may set a precedent for how federal funding is allocated based on compliance with federal policies.

Additionally, this move could impact the research community, as Harvard is a significant recipient of federal research grants.

Future Forces

Looking ahead, Harvard may need to reconsider its admissions policies to align with federal requirements. The university could face further financial and reputational consequences if it does not comply.

The administration may also extend this scrutiny to other institutions, potentially leading to a broader overhaul of admissions practices in higher education.

Data Points

  • May 2025: Trump administration directs federal agencies to cancel $100 million in contracts with Harvard.
  • Recent Supreme Court ruling: Declared Harvard’s admissions policies discriminatory based on race.
  • $527,000: Value of a Harvard Management Licenses contract, one of the contracts under review.
  • April 2025: A $100,000 contract for graduate student research services was awarded to Harvard.

The ongoing dispute between the Trump administration and Harvard University highlights the complex interplay between federal funding, institutional policies, and legal rulings. As this situation evolves, it is likely to have significant implications for higher education and research in the United States.