US Secretary of Education Linda McMahon hinted at the possibility of unfreezing billions of dollars the federal government put on ice to punish elite universities it deemed as soft on campus antisemitism and excessively woke.

“It would be my goal that if colleges and universities are abiding by the laws of the United States and doing what we’re expecting of them, they could expect to have taxpayer funded programs,” McMahon told Bloomberg’s Akayla Gardener during an interview which aired on Tuesday on the news outlet’s YouTube channel.

Responding to an additional question Bloomberg posed regarding President Donald Trump’s saying recently that Harvard University —  which lost over $2.26 billion during the spree of cuts — “is starting to behave” — McMahon agreed with the president, suggesting that Harvard and the administration are drawing near a compromise, perhaps even on reforms that conservatives have long said will make higher education more meritocratic and less ideologically biased.

“Clearly what he’s indicating is that we are, I think, making progress in some of the discussions, even though they [Harvard] have taken a hard line,” McMahon said. “They have, for instance, replaced their head of Middle East Studies. They have already put in place some of the things that we have talked about in our negotiations with Columbia.”

She added, however, that taxing Harvard’s $53.2 billion endowment, the value of which exceeds the gross domestic product of the Hashemite Kingdom of Jordan and over 120 other nations, would benefit taxpayers. In April, Trump ordered the Internal Revenue Service (IRS) to review Harvard’s tax-exempt status, a measure that was cheered by populists while being regarded as extreme by others who argue that following through on the revocation stands to make American higher education less competitive.

“You know, these are really outstandingly large endowments — $53 billion, you know, for Harvard, and that money doesn’t just sit still,” McMahon continued. “It is invested, and if it’s invested well, they can expect a good return on that investment. And so, if citizens of our country are providing tax support to universities that do take federal dollars, then maybe some of that should come back.”

Later on in the interview, McMahon said that Columbia University and the Trump administration have weighed agreeing to a consent decree, in which neither party concedes fault, to resolve the government’s claims against the institution. Only days earlier, her Education Department said the university should lose its accreditation with the Middle States Commission for being “in violation of federal antidiscrimination laws.” Such a measure would be catastrophic to the institution, which is one of the oldest in the US.

“After Hamas’s Oct. 7, 2023, terror attack on Israel, Columbia University’s leadership acted with deliberate indifference towards the harassment of Jewish students on its campus. This is not only immoral, but also unlawful,” McMahon said on June 4. “Accreditors have an enormous public responsibility as gatekeepers of federal student aid. They determine which institutions are eligible for federal student loans and Pell Grants. Just as the Department of Education has an obligation to uphold federal discrimination law, university accreditors have an obligation to ensure member institutions abide by their standards.”

The Trump administration has launched a robust effort to fight antisemitism at every level of society. In February, it created a “multi-agency” Task Force to Combat Antisemitism. Its “first priority will be to root out antisemitic harassment in schools and on college campuses,” the US Justice Department said in a press release, which noted that the group will be housed inside the Justice Department’s Civil Rights Division and include representatives from the departments of education and health and human services.

The announcement came less than a week after Trump directed federal agencies to combat campus antisemitism and hold pro-terror extremists accountable for the harassment of Jewish students, fulfilling a promise he made while campaigning for a second term in office. Continuing work started during his first administration — when Trump issued Executive Order 13899 to ensure that civil rights law apply equally Jews — the new executive order, titled “Additional Measures to Combat Antisemitism,” calls for “using all appropriate legal tools to prosecute, remove, or otherwise … hold to account perpetrators of unlawful antisemitic harassment and violence.”

The moves precipitated what became a fight over the future of elite higher education, against which conservatives have lodged a slew of criticisms for decades. In Harvard’s case, the administration called for “viewpoint diversity in hiring and admissions,” the “discontinuation of [diversity, equity, and inclusion, or DEI, initiatives],” and “reducing forms of governance bloat.” They also implore Harvard to begin “reforming programs with egregious records of antisemitism” and to recalibrate its approach to “student discipline.”

By that time, McMahon had already announced the cancellation of $400 million in federal contracts and grants for Columbia University, securing the school’s acceding to a slew of demands the administration put forth as preconditions for restoring the money. Later, Princeton University saw hundreds of millions of dollars of its federal grants and funding suspended, as did Northwestern University, Cornell University, Brown University, and others.

The confiscations are now being fought in federal court, with Harvard University suing the administration to obtain a precedent setting summary judgement. Over a dozen institutions have sought and received permission to file an amicus brief on the school’s behalf.

“We stand for the truth that colleges and universities across the country can embrace and honor their legal obligations and best fulfill their essential role in society without improper government intrusion,” Harvard’s president, Alan Garber, said in a statement announcing the legal action. “That is how we achieve academic excellence, safeguard open inquiry and freedom of speech, and conduct pioneering research — and how we advance the boundless exploration that propels our nation and its people into a better future.”

For some, Harvard’s allegations against the Trump administration are hollow.

“Claiming that the entire institution is exempt from any oversight or intervention is extraordinary,” Alex Joffe, anthropologist and editor of BDS Monitor for Scholars for Peace in the Middle East, told The Algemeiner in April. “Moreover, the idea that cutting voluntary government funding is de facto denial of free speech also sounds exaggerated if not absurd. If an institution doesn’t want to be subjected to certain requirements in a relationship entered into voluntarily with the government, they shouldn’t take the money.”

Follow Dion J. Pierre @DionJPierre.

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