The US Department of Justice on Monday opened a compliance review into Harvard University to determine whether financial aid programs funded by China-based sources actively discriminate against American students.

The DOJ’s Civil Rights Division will examine whether Harvard violated Title VI of the Civil Rights Act of 1964, which prohibits recipients of federal financial assistance from discriminating based on race, color or national origin. The department launched the review after auditing Harvard’s foreign-funding disclosures.

In commenting on the DOJ’s review, Assistant Attorney General for Civil Rights Harmeet K. Dhillon stated:

Schools cannot take federal dollars and then turn around and accept money from foreign sources to give financial aid that deliberately excludes American citizens”.

Harvard has disclosed nearly $4.5 billion in foreign funding, including more than $630 million from China-based sources, according to the DOJ’s announcement. Section 117 of the Higher Education Act requires universities to report foreign gifts and contracts worth at least $250,000.

In its notice letter to Harvard, the DOJ alleged that some China-based donors restricted how the university could use their funds and required it to support financial aid programs that favor students from particular countries. According to the department, Harvard appears to follow those restrictions by favoring foreign students based on national origin, potentially disadvantaging US citizens and people of other national origins. The DOJ emphasized that it has not reached any conclusions about whether Harvard violated federal law.

The DOJ requested documents and communications concerning what it called “Chinese Restricted Funds,” including information about donor restrictions and Harvard’s management of the funds. The department also requested information about students who received aid through the programs, including their country of origin, nationality, citizenship status, school of enrollment, and financial aid amount. The DOJ directed Harvard to respond by July 31.

Harvard spokesperson Jason A. Newton said the university complies with foreign-funding disclosure requirements and “does not unlawfully discriminate on the basis of race, ethnicity, or national origin in allocating financial aid.” Newton said Harvard would review the DOJ’s letter and engage with the government.

Chinese Embassy spokesperson Liu Chang said educational cooperation between China and the US benefits both countries and that political concerns should not disrupt normal educational and academic exchanges.

The investigation adds to the Trump administration’s broader disputes with Harvard over the university’s federal funding, admissions practices, and enrollment of international students.

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