WASHINGTON, D.C. — The U.S. Department of Education rolled out new guidance last week to expand state flexibility in managing federal education programs, while also moving aggressively against Harvard University over concerns about admissions practices and financial responsibility.
The department’s Office of Elementary and Secondary Education reminded states they can apply for Ed-Flex authority under the Education Flexibility Partnership Act of 1999, which allows state agencies to waive certain federal requirements for school districts without prior federal approval. Acting Assistant Secretary Hayley Sanon said the move reflects the Trump administration’s priority of strengthening literacy, numeracy, and parental empowerment by “returning education to the states.”
Currently, 11 states hold Ed-Flex authority, and in the 2023-24 school year they granted roughly 575 waivers. Officials said expanding use of the program could help districts tailor federal mandates to local needs and boost academic achievement.
At the same time, Education Secretary Linda McMahon announced new enforcement measures aimed at Harvard University. The department’s Office for Civil Rights issued a Denial of Access letter after Harvard repeatedly refused to provide admissions data sought in a compliance review. The review followed the Supreme Court’s 2023 ruling in Students for Fair Admissions v. Harvard, which found the school had used unlawful racial preferences in admissions. Harvard now has 20 days to comply or face additional penalties.
“The highest court in our nation ruled conclusively that Harvard was illegally using extreme racial preferencing in their admissions processes,” McMahon said. “No one – not even Harvard – is above the law.”
Separately, the department’s Office of Federal Student Aid placed Harvard on Heightened Cash Monitoring status, citing concerns over its financial condition. The designation requires Harvard to disburse federal student aid with its own funds before seeking reimbursement from the government. The school must also post a $36 million letter of credit to guarantee its obligations.
Officials pointed to three “triggering events” under federal standards, including an HHS finding that Harvard violated Title VI of the Civil Rights Act, its refusal to provide OCR-requested data, and its recent issuance of more than $1 billion in bonds despite warning investors that federal actions could materially affect its financial profile.
“Harvard must now seek reimbursement after distributing federal student aid and post financial protection so that the Department can ensure taxpayer funds are not at risk,” McMahon said.
While Harvard remains eligible for federal student aid, the actions underscore heightened federal scrutiny of both its civil rights compliance and financial stability.
The latest steps come as the Trump administration continues its push to expand school choice, deregulate state education systems, and increase accountability for higher education institutions.
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