AsianFin -- Tensions between Harvard University and President Donald Trump’s administration escalated on Monday after the federal government moved to freeze more than $2 billion in multi-year grants and $60 million in contracts, following the university’s refusal to comply with federal demands.

The freeze comes amid a broader federal investigation into U.S. universities over allegations of antisemitism and racial preferences, with the administration threatening to withhold billions in funding nationwide.

“We have informed the administration through our legal counsel that we will not accept their proposed agreement,” Harvard President Alan M. Garber said in a statement on Monday, signaling a firm stance against what the university sees as federal overreach.

In response to the funding freeze, Harvard reiterated its position: “The University will not surrender its independence or its constitutional rights.”

Harvard is among the first major universities to openly push back against the Trump administration’s sweeping demands. As institutions across the country navigate increasing political scrutiny, Harvard’s stand may set the tone for how others respond to federal threats that jeopardize research funding, student aid, and employee support.

The dispute underscores rising friction between higher education institutions and federal authorities, particularly over free speech, campus policy, and diversity programs. Harvard’s high-profile rejection marks a critical moment in what could become a defining legal and political battle over the autonomy of American universities.