WASHINGTON: President Donald Trump’s education secretary said Monday that Harvard will no longer receive federal grants, escalating an ongoing battle with the prestigious university as it challenges the funding cuts in court.
The Trump administration has for weeks locked horns with Harvard and other higher education institutions over claims they tolerate anti-Semitism on their campuses — threatening their budgets, tax-exempt status and enrollment of foreign students.
Education Secretary Linda McMahon, in a letter sent to Harvard’s president and posted online, said that the university “should no longer seek GRANTS from the federal government, since none will be provided.”
She alleged that Harvard has “failed to abide by its legal obligations, its ethical and fiduciary duties, its transparency responsibilities, and any semblance of academic rigor.”
Harvard — routinely ranked among the world’s top universities — has drawn Trump’s ire by refusing to comply with his demands that it accept government oversight of its admissions, hiring practices and political slant.
That prompted the Trump administration to in mid-April freeze $2.2 billion in federal funding, with a total of $9 billion under review.
McMahon, a former wrestling executive, said that her letter “marks the end of new grants for the University.”
Harvard is the wealthiest US university with an endowment valued at $53.2 billion in 2024.
The latest move comes as Trump and his White House crack down on US universities on several fronts, justified as a reaction to what they say is uncontrolled anti-Semitism and a need to reverse diversity programs aimed at addressing historical oppression of minorities.
The administration has threatened funding freezes and other punishments, prompting concerns over declining academic freedom.
It has also moved to revoke visas and deport foreign students involved in the protests, accusing them of supporting Palestinian militant group Hamas, whose October 7, 2023 attack on Israel provoked the war.
Trump’s claims about diversity tap into long-standing conservative complaints that US university campuses are too liberal, shutting out right-wing voices and favoring minorities.

SAN FRANCISCO: OpenAI CEO Sam Altman announced Monday that the company behind ChatGPT will continue to be run as a nonprofit, abandoning a contested plan to convert into a for-profit organization.
The structural issue had become a significant point of contention for the artificial intelligence (AI) pioneer, with major investors pushing for the change to better secure their returns.
AI safety advocates had expressed concerns about pursuing substantial profits from such powerful technology without the oversight of a nonprofit board of directors acting in society’s interest rather than for shareholder profits.
“OpenAI is not a normal company and never will be,” Altman wrote in an email to staff posted on the company’s website.
“We made the decision for the nonprofit to stay in control after hearing from civic leaders and having discussions with the offices of the Attorneys General of California and Delaware,” he added.
OpenAI was founded as a nonprofit in 2015 and later created a “capped” for-profit entity allowing limited profit-making to attract investors, with cloud computing giant Microsoft becoming the largest early backer.
This arrangement nearly collapsed in 2023 when the board unexpectedly fired Altman. Staff revolted, leading to Altman’s reinstatement while those responsible for his dismissal departed.
Alarmed by the instability, investors demanded OpenAI transition to a more traditional for-profit structure within two years.
Under its initial reform plan revealed last year, OpenAI would have become an outright for-profit public benefit corporation (PBC), reassuring investors considering the tens of billions of dollars necessary to fulfill the company’s ambitions.
Any status change, however, requires approval from state governments in California and Delaware, where the company is headquartered and registered, respectively.
The plan faced strong criticism from AI safety activists and co-founder Elon Musk, who sued the company he left in 2018, claiming the proposal violated its founding philosophy.
In the revised plan, OpenAI’s money-making arm will now be fully open to generate profits but, crucially, will remain under the nonprofit board’s supervision.
“We believe this sets us up to continue to make rapid, safe progress and to put great AI in the hands of everyone,” Altman said.
OpenAI’s major investors will likely have a say in this proposal, with Japanese investment giant SoftBank having made the change to being a for-profit a condition for their massive $30 billion investment announced on March 31.
In an official document, SoftBank stated its total investment could be reduced to $20 billion if OpenAI does not restructure into a for-profit entity by year-end.
The substantial cash injections are needed to cover OpenAI’s colossal computing requirements to build increasingly energy-intensive and complex AI models.
The company’s original vision did not contemplate “the needs for hundreds of billions of dollars of compute to train models and serve users,” Altman said.
SoftBank’s contribution in March represented the majority of the $40 billion raised in a funding round that valued the ChatGPT maker at $300 billion, marking the largest capital-raising event ever for a startup.
The company, led by Altman, has become one of Silicon Valley’s most successful startups, propelled to prominence in 2022 with the release of ChatGPT, its generative AI chatbot.