How Trump's Harvard move could hit revenue of US universities
The Trump administration barred Harvard from enrolling international students, signaling a broader crackdown that threatens university finances and targets elite institutions over alleged misconduct and foreign ties.
- Trump administration bars Harvard from enrolling international students
- DHS accuses Harvard of fostering violence and ties with Chinese Communist Party
- Move threatens finances of US universities reliant on international tuition
The Trump administration's decision to bar Harvard University from enrolling international students sent shockwaves through American higher education on Thursday, signalling a broader crackdown that could reshape university finances across the country.
The move was announced amid an ongoing Department of Homeland Security investigation into Harvard, made public through a letter from Homeland Security Secretary Kristi Noem.
In the letter, Noem accused the university of “fostering violence, antisemitism, and coordinating with the Chinese Communist Party,” and stated that the ability to admit international students is “a privilege, not a right.” In a post on X, she further criticized elite institutions for relying on high international tuition fees to support their multibillion-dollar endowments.
While the decision is currently directed at Harvard, the implications are national. International students, who are more likely to pay full tuition, have long helped subsidize domestic students who receive financial aid. Cutting off this vital source of income is a direct threat to the economic model many US universities depend on.
“This isn’t just about Harvard. This is a message to the entire higher education sector: You could be next,” said Robert Kelchen, a higher education finance expert at the University of Tennessee. His warning reflects growing concern that other elite institutions could soon face similar restrictions.
Noem confirmed as much in an appearance on Fox News, saying the administration is “absolutely” considering taking action against other universities, including Columbia University.
Harvard’s international student population, about 6,800 students, makes up nearly 27 per cent of its total enrollment. Nationwide, international students represent a significant share at many institutions.
In 2023, 43 colleges had foreign student populations exceeding that of Harvard, with some schools seeing international enrollment reach nearly 40%. Columbia University, for example, had a foreign student share of 39% that year.
The timing couldn’t be worse for research universities, many of which are already reeling from severe federal funding cuts. Harvard, accused by the administration of mishandling campus harassment and antisemitism, has recently lost access to nearly USD 3 billion in federal contracts and grants. The university has yet to comment on the potential financial fallout of the latest restriction.
Chuck Ambrose, a former university president and educational consultant, summed up the broader impact: “This is a huge blow, not just to Harvard but to every US university that depends on international students to keep their finances stable.”