The Trump administration escalated its standoff with Harvard University on Friday, placing the Ivy League institution under heightened federal financial oversight and warning of sanctions if it fails to comply with government demands.

Education Secretary Linda McMahon said Harvard was being placed under heightened cash monitoring, a move that forces the university to cover financial aid with its own funds before seeking reimbursement from Washington. “This is a step we are taking to ensure accountability,” McMahon said. “Harvard must demonstrate that it is complying with federal law in its admissions practices.”

She warned of further enforcement action if the university does not turn over records to prove it no longer considers race in admissions.

The Associated Press reported that Harvard did not respond to a request for comment.

The moves reflect President Donald Trump’s broader campaign against universities he accuses of liberal bias. The Trump administration has already cut $2.6 billion in federal research funding to Harvard after it resisted changes to governance and student discipline policies. A federal judge ordered that money restored earlier this month, calling the cuts a targeted, ideologically-motivated assault on this country’s premier universities.

On Friday, Harvard confirmed that $46 million in frozen research funding was released by the Department of Health and Human Services. Still, its admissions practices remain under scrutiny.

The Education Department has been pressing Harvard to hand over detailed records of applicants and admitted students, citing the Supreme Court’s 2023 decision banning consideration of race in college admissions. “We need to know that Harvard is playing by the rules,” McMahon said.

– Ends

With inputs from Associated Press