Harvard seeks billions in funding restored at a pivotal hearing in its standoff with Trump
President Trump's administration has battered the nation's oldest and wealthiest university with sanctions for months as it presses a series of demands on the Ivy League school, which it decries as a hotbed of liberalism and antisemitism.
Harvard has resisted, and the lawsuit over the cuts to its research grants represents the primary challenge to the administration in a standoff that is being widely watched across higher education and beyond.
A lawyer for Harvard, Steven Lehotsky, said at Monday's hearing the case is about the government trying to control the 'inner workings' of Harvard. The funding cuts, if not reversed, could lead to the loss of research, damaged careers and the closing of labs, he said.
'It's not about Harvard's conduct,' he said. 'It's about the government's conduct toward Harvard.'
The case is before U.S. District Judge Allison Burroughs, who is presiding over lawsuits brought by Harvard against the administration's efforts to keep it from hosting international students. In that case, she temporarily blocked the administration's efforts.
At Monday's hearing, Harvard asked her to reverse a series of funding freezes. Such a ruling, if it stands, would revive Harvard's sprawling scientific and medical research operation and hundreds of projects that lost federal money.
A lawyer for the government, Michael Velchik, said the Trump administration has authority to cancel the grants after concluding the funding did not align with its priorities, namely Trump's executive order combating antisemitism.
He argued Harvard allowed antisemitism to flourish at the university following the Oct. 7, 2023, Hamas-led attacks on Israel, including protesters camped out on campus chanting antisemitic slogans as well attacks on Jewish students.
'Harvard claims the government is anti-Harvard. I reject that,' said Velchik, a Harvard alumnus. 'The government is pro-Jewish students at Harvard. The government is pro-Jewish faculty at Harvard.'
Burroughs pushed back, questioning how the government could make 'ad-hoc' decisions to cancel grants and do so without offering evidence that any of the research is antisemitic. At one point, she called the government's assertions 'mind-boggling.'
She also argued the government had provided 'no documentation, no procedure' to 'suss out' whether Harvard administrators 'have taken enough steps or haven't' to combat antisemitism.
'The consequences of that in terms of constitutional law are staggering,' she said. 'I don't think you can justify a contract action based on impermissible suppression of speech. Where do I have that wrong?'
Velchik said the case comes down to the government's choosing how best to spend billions of dollars in research funding.
Harvard's lawsuit accuses the Trump administration of waging a retaliation campaign against the university after it rejected a series of demands from a federal antisemitism task force in April. A second lawsuit over the cuts filed by the American Association of University Professors and its Harvard faculty chapter has been consolidated with the university's suit.
The task force's demands included sweeping changes related to campus protests, academics and admissions. For example, Harvard was told to audit the viewpoints of students and faculty and admit more students or hire new professors if the campus was found to lack diverse points of view.
Harvard President Alan Garber says the university has made changes to combat antisemitism but said no government 'should dictate what private universities can teach, whom they can admit and hire, and which areas of study and inquiry they can pursue.'
Monday's hearing ended without Burroughs issuing a ruling from the bench. A ruling is expected later in writing.
Several dozen alumni from Harvard joined students and faculty to decry the effort to cut the federal funds, holding up signs reading 'Hands Off Harvard,' 'Strong USA Needs Strong Harvard' and 'Our Liberty Is Not For Sale.'
Anurima Bhargava, who wrote the amicus brief on behalf of more than 12,000 fellow Harvard alumni in the case, said the graduates spoke up because 'they understand what is at stake here and what the end goal of the government is, to take away our ability to pursue the mission, the freedom and the values that have been the cornerstone of higher education.'
Three Harvard researchers who lost their federal funding spoke about disruptions to the long-term impact of funding on cancer, cardiovascular diseases and other health conditions. They said the cuts could force researchers to go overseas to work.
'Unfortunately, the termination of this research work would mean the end of this progress and the implications are serious for the well-being of Americans and our children into the future,' said Walter Willett, a Harvard professor of epidemiology and nutrition who lost grants that funded long-term studies of men's and women's health.
'This is just one example of the arbitrary and capricious weaponization of taxpayer money that is undermining the health of Americans,' he said.
The same day Harvard rejected the government's demands, Trump officials moved to freeze $2.2 billion in research grants. Education Secretary Linda McMahon declared in May that Harvard would no longer be eligible for new grants, and weeks later the administration began canceling contracts with Harvard.
As Harvard fought the funding freeze in court, individual agencies began sending letters announcing the frozen research grants were being terminated. They cited a clause that allows grants to be scrapped if they no longer align with government policies.
Harvard, which has the nation's largest endowment at $53 billion, has moved to self-fund some of its research, but warned it can't absorb the full cost of the federal cuts.
In court filings, the school said the government 'fails to explain how the termination of funding for research to treat cancer, support veterans, and improve national security addresses antisemitism.'
The Trump administration denies the cuts were made in retaliation and argues the government has wide discretion to cancel contracts for policy reasons.
The research funding is only one front in Harvard's fight with the government. The Trump administration also has sought to prevent the school from hosting foreign students, and Trump has threatened to revoke Harvard's tax-exempt status.
Finally, last month, the Trump administration formally issued a finding that the school tolerated antisemitism — a step that eventually could jeopardize all of Harvard's federal funding, including federal student loans or grants. The penalty is typically referred to as a 'death sentence.'
After Monday's hearing, Trump took to his social media platform, Truth Social, to attack Burroughs, calling her a 'TOTAL DISASTER.' Burroughs was appointed by former President Barack Obama.
'Harvard has $52 Billion Dollars sitting in the Bank, and yet they are anti-Semitic, anti-Christian, and anti-America,' he wrote. 'Much of this money comes from the U.S.A., all to the detriment of other Schools, Colleges, and Institutions, and we are not going to allow this unfair situation to happen any longer.'
Casey writes for the Associated Press.

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Still, the company's net profit fell 3.1% in Q2 as operating costs increased. "Some consumers have been rushing to make purchases before the tariffs take effect," an executive said on the earnings call. "In the first half of 2025, we achieved approximately 3% growth year over year, higher than the market demand with new product launches and efficient sales operations, continuing to strengthen our market presence." But that pull-forward in demand could signal weakness ahead in the months to come if trade tensions escalate again. "A rise in product costs driven by the 50% tariff on steel and reciprocal tariffs that are set to be applied in the latter half of the year could translate into greater uncertainties for the market price," the executive said. "Additionally, shifts in the US government's trade policies and weakening consumer sentiment cast doubt on the demand outlook for home appliances." This isn't the first time LG has grappled with US protectionist policies. In 2018, during Trump's first term, washing machine prices rose when Trump targeted the industry with tariffs. Tariffs remain a key concern for South Korean appliance maker LG Electronics ( The company said that if President Trump's blanket tariffs take effect on Aug. 1, it will adjust prices and move some production to its plants in Mexico and the US. LG produces its products worldwide, particularly in South Korea, China, and Vietnam. On Aug. 1, imports from South Korea face a 25% tariff, while those from Vietnam face a 20% tariff. Imports from China are estimated to face tariffs of roughly 50%, though that could change after US and Chinese officials meet in Sweden for the next round of trade talks. According to LG, consumers rushed to purchase items in the first half of the year to avoid tariffs. Still, the company's net profit fell 3.1% in Q2 as operating costs increased. "Some consumers have been rushing to make purchases before the tariffs take effect," an executive said on the earnings call. "In the first half of 2025, we achieved approximately 3% growth year over year, higher than the market demand with new product launches and efficient sales operations, continuing to strengthen our market presence." But that pull-forward in demand could signal weakness ahead in the months to come if trade tensions escalate again. "A rise in product costs driven by the 50% tariff on steel and reciprocal tariffs that are set to be applied in the latter half of the year could translate into greater uncertainties for the market price," the executive said. "Additionally, shifts in the US government's trade policies and weakening consumer sentiment cast doubt on the demand outlook for home appliances." This isn't the first time LG has grappled with US protectionist policies. 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The meeting will come as the two sides race to secure a deal ahead of next Friday — Trump's self-imposed deadline for 30% tariffs on EU goods to kick in. On Friday, Trump put the odds of a deal at "50-50." From the report: Bloomberg reports that European Commission President Ursula von der Leyen will meet with President Trump this weekend as he travels to his golf club in Scotland in a bid to secure a trade deal. The meeting will come as the two sides race to secure a deal ahead of next Friday — Trump's self-imposed deadline for 30% tariffs on EU goods to kick in. On Friday, Trump put the odds of a deal at "50-50." From the report: Trump: 'We haven't really had a lot of luck with Canada' President Trump on Friday expressed pessimism on US trade negotiations with Canada, suggesting he may simply impose threatened 35% tariffs on Canadian goods not covered by the existing US-Canada-Mexico trade agreement. "We haven't really had a lot of luck with Canada. I think Canada could be one where there's just a tariff, not really a negotiation," he said. More from Reuters: President Trump on Friday expressed pessimism on US trade negotiations with Canada, suggesting he may simply impose threatened 35% tariffs on Canadian goods not covered by the existing US-Canada-Mexico trade agreement. "We haven't really had a lot of luck with Canada. I think Canada could be one where there's just a tariff, not really a negotiation," he said. More from Reuters: Boston Beer Company says strong profits helped brewer absorb tariff costs The Boston Beer Company (SAM) continues to feel the effects of President Trump's tariffs, but a strong quarter of sales and profit is helping the Samuel Adams brewer absorb some of those cost increases. Boston Beer expects tariffs to add about $15 million to $20 million in costs for the full year. Previously, it modeled tariff costs of $20 million to $30 million. Expect the company to raise prices by 1% to 2% to offset some of the costs as well, executives said. Boston Beer did see tariffs negatively affect its gross margin toward the end of the second quarter, but it benefited from improved brewery efficiencies. For the second quarter, the company reported profits of $5.45 per share on revenue of $625 million, versus estimates for earnings of $4.00 per share on $588 million, according to S&P Global Market Intelligence. "Right now, I think we're very happy with the performance," Boston Beer CEO Michael Spillane said on the earnings call. "Not only that, but that's allowed us to offset some of the tariffs that we've seen so far." The Boston Beer Company (SAM) continues to feel the effects of President Trump's tariffs, but a strong quarter of sales and profit is helping the Samuel Adams brewer absorb some of those cost increases. Boston Beer expects tariffs to add about $15 million to $20 million in costs for the full year. 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Some headlines from Trump on tariffs this morning Via Bloomberg: Via Bloomberg: Trump: US will sell 'so much' beef to Australia President Trump said on Thursday that the US will sell "so much" beef to Australia, following Canberra relaxing import restrictions. Trump added that other countries who had refused US beef products were on notice. Reuters reports: Read more here. President Trump said on Thursday that the US will sell "so much" beef to Australia, following Canberra relaxing import restrictions. Trump added that other countries who had refused US beef products were on notice. Reuters reports: Read more here. World's No. 3 automaker Kia takes $570M tariff hit in Q2 Reuters reports: Read more here. Reuters reports: Read more here. Puma shares dive after warning of full-year loss, US tariff impact Puma ( shares fell 17% on Friday after the sportswear brand said that it now expects an annual loss due to a decline in sales and US tariffs denting profit. Reuters reports: Read more here. Puma ( shares fell 17% on Friday after the sportswear brand said that it now expects an annual loss due to a decline in sales and US tariffs denting profit. Reuters reports: Read more here. LG Energy Solution warns of slowing EV battery demand due to U.S. tariffs, policy headwinds Reuters reports: South Korean battery firm LG Energy ( Solution warned on Friday of a further slowdown in demand by early next year due to U.S. tariffs and policy uncertainties after it posted a quarterly profit jump. Its major customers Tesla (TSLA) and General Motors (GM) warned of fallout from U.S. tariffs and legislation that will end federal subsidies for EV purchases on September 30. "US tariffs and an early end to EV subsidies will put a burden on automakers, potentially leading to vehicle price increases and a slowdown in EV growth in North America," CFO Lee Chang-sil said during a conference call. Read more here. Reuters reports: South Korean battery firm LG Energy ( Solution warned on Friday of a further slowdown in demand by early next year due to U.S. tariffs and policy uncertainties after it posted a quarterly profit jump. Its major customers Tesla (TSLA) and General Motors (GM) warned of fallout from U.S. tariffs and legislation that will end federal subsidies for EV purchases on September 30. "US tariffs and an early end to EV subsidies will put a burden on automakers, potentially leading to vehicle price increases and a slowdown in EV growth in North America," CFO Lee Chang-sil said during a conference call. Read more here. Japan, US differ on how trade-deal profits will be split Japan said Friday that profits from the $550 billion investment deal with the US will be shared based on how much each side contributes. A government official suggested the US will also put in significant funds, but details of the scheme remain unclear. The White House had announced earlier in the week that the US would retain 90% of the profits from the $550 billion US-bound investment and loans that Japan would exchange in return for reduced tariffs on auto and other exports to the US. This would mean that returns would be split 10% for Japan and 90% for the US, according to the White House official, and that it would be "based on the respective levels of contribution and risk borne by each side." Bloomberg News reports: Read more here. Japan said Friday that profits from the $550 billion investment deal with the US will be shared based on how much each side contributes. A government official suggested the US will also put in significant funds, but details of the scheme remain unclear. The White House had announced earlier in the week that the US would retain 90% of the profits from the $550 billion US-bound investment and loans that Japan would exchange in return for reduced tariffs on auto and other exports to the US. This would mean that returns would be split 10% for Japan and 90% for the US, according to the White House official, and that it would be "based on the respective levels of contribution and risk borne by each side." Bloomberg News reports: Read more here. US business activity rises; tariffs fuel inflation concerns US business activity rose in July, but companies increased the prices for goods and services, supporting the view from economists that inflation will accelerate in the second half of 2025 and it will mainly be due to tariffs on imports. Reuters reports: Read more here. US business activity rose in July, but companies increased the prices for goods and services, supporting the view from economists that inflation will accelerate in the second half of 2025 and it will mainly be due to tariffs on imports. Reuters reports: Read more here. It sounds like Trump now has a new minimum tariff rate: 15% President Trump set a new rhetorical floor for tariffs on Wednesday night in comments in a shift that raises the president's baseline rate from 10%. Yahoo Finance's Ben Werschkul writes: Read more here. President Trump set a new rhetorical floor for tariffs on Wednesday night in comments in a shift that raises the president's baseline rate from 10%. Yahoo Finance's Ben Werschkul writes: Read more here. Keurig Dr. Pepper brewer sales volume drops 22%, CEO says tariff impacts 'will become prominent' Keurig Dr. Pepper CEO Tim Cofer said that tariffs are putting additional pressure on the company in an earnings call Thursday, especially when it comes to its coffee business, which KDP expects to be "subdued" for the remainder of the year. "Commodity inflation will build as we roll into the back half and we roll into our higher cost hedges on green coffee," Cofer said. "The tariff impacts will become prominent. And we all know that tariff situation is a bit fluid." Keurig is one of the biggest coffee importers in the US, along with Starbucks (SBUX) and Nestle (NSRGY). The US sources most of its coffee from Brazil, which is set to face 50% tariffs on its products on Aug. 1, and Colombia, which faces a tariff rate of 10%. In Keurig's coffee business, appliance volume decreased 22.6% during the quarter, reflecting impacts of retailer inventory management, and K-Cup pod volume decreased 3.7%, reflecting category elasticity in response to price increases, the company reported. "Our retail partners will likely continue to manage their inventory levels tightly, in particular on brewers," Cofer commented. "And then finally, you know we did a round of pricing at the beginning of the year. We've announced another round of pricing that will take effect next month, and we'll need to closely monitor how that elasticity evolves." Read more about Keurig earnings here. Keurig Dr. Pepper CEO Tim Cofer said that tariffs are putting additional pressure on the company in an earnings call Thursday, especially when it comes to its coffee business, which KDP expects to be "subdued" for the remainder of the year. "Commodity inflation will build as we roll into the back half and we roll into our higher cost hedges on green coffee," Cofer said. "The tariff impacts will become prominent. And we all know that tariff situation is a bit fluid." Keurig is one of the biggest coffee importers in the US, along with Starbucks (SBUX) and Nestle (NSRGY). The US sources most of its coffee from Brazil, which is set to face 50% tariffs on its products on Aug. 1, and Colombia, which faces a tariff rate of 10%. In Keurig's coffee business, appliance volume decreased 22.6% during the quarter, reflecting impacts of retailer inventory management, and K-Cup pod volume decreased 3.7%, reflecting category elasticity in response to price increases, the company reported. "Our retail partners will likely continue to manage their inventory levels tightly, in particular on brewers," Cofer commented. "And then finally, you know we did a round of pricing at the beginning of the year. We've announced another round of pricing that will take effect next month, and we'll need to closely monitor how that elasticity evolves." Read more about Keurig earnings here. The EU's Trump insurance As my colleague detailed below, EU member states voted to impose tariffs on over $100 billion of US goods from Aug. 7. The Financial Times reported that this move that allows the bloc to impose the levies quickly at any point in the future should its trade relationship with the US take a turn for the worse. From the report: Read more here (subscription required). As my colleague detailed below, EU member states voted to impose tariffs on over $100 billion of US goods from Aug. 7. The Financial Times reported that this move that allows the bloc to impose the levies quickly at any point in the future should its trade relationship with the US take a turn for the worse. From the report: Read more here (subscription required). Europe approves $100B-plus tariff backup plan A report in the Wall Street Journal on Thursday said that the European Union has now approved its retaliatory tariff package on US goods that could start in August if no trade agreement is reached. The EU announced on Wednesday that it will hit the US with 30% tariffs on over $100 billion worth of goods in the event that no deal is made and if President Trump decides to follow through with his threat to impose that rate on most of the bloc's exports after Aug. 1. The US exports, which would include goods such as Boeing (BA) aircraft, US-made cars and bourbon whiskey would all face heavy tariffs that match Trump's 30% threat. The approval of the package comes despite the growing optimism that the US and EU will reach a deal that would put baseline tariffs on the bloc at 15%, matching the level the US applied to Japan. The EU is keen to reach a deal with the US but as a cautionary measure has approved 30% tariffs if a deal is not made. A report in the Wall Street Journal on Thursday said that the European Union has now approved its retaliatory tariff package on US goods that could start in August if no trade agreement is reached. The EU announced on Wednesday that it will hit the US with 30% tariffs on over $100 billion worth of goods in the event that no deal is made and if President Trump decides to follow through with his threat to impose that rate on most of the bloc's exports after Aug. 1. The US exports, which would include goods such as Boeing (BA) aircraft, US-made cars and bourbon whiskey would all face heavy tariffs that match Trump's 30% threat. The approval of the package comes despite the growing optimism that the US and EU will reach a deal that would put baseline tariffs on the bloc at 15%, matching the level the US applied to Japan. The EU is keen to reach a deal with the US but as a cautionary measure has approved 30% tariffs if a deal is not made. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Protesters stage demo outside hotel used to house migrants
Hundreds of anti-illegal migration protesters and pro-immigration counter-protesters have demonstrated outside a hotel being used to house migrants. Sunday saw the latest in a series of demonstrations outside The Bell Hotel in Epping, Essex, after an asylum seeker was charged with allegedly attempting to kiss a 14-year-old girl. Protesters waved union flags, while Stand Up To Racism counter-protesters marched to the hotel with signs reading: 'Stop scapegoating refugees and migrants'. Weyman Bennett, co-convener of Stand Up To Racism, told the PA news agency that volunteer security personnel accompanied them. He added: 'We're happy to demonstrate but we're not happy to be attacked by thugs, racists and hooligans.' One man was seen being taken away from the station area by two officers, though it was not clear if he was part of any group. Members of Stand Up To Racism were seen trying to stop people from filming the protesters, as locals watched the march from their driveways. One local man was seen chanting in support of Tommy Robinson, whose real name is Stephen Yaxley-Lennon, as the march went past. He began shouting 'there's only one Tommy Robinson' when a protester approached him. One Stand Up To Racism protester chanted 'fascist scum' at him before police stepped in to ensure they would not come together. Essex Police said it had established protest restrictions due to repeated serious disruption, violence, and harm to the community during previous demonstrations. The force said that there was a ban on anyone wearing face coverings and that there were designated sites opposite the hotel for protesters. A dispersal order was in effect from 12pm on Sunday until 8am on Monday, covering Epping town centre and nearby transport hubs. Both sets of protesters were kept separated by fences. Those protesting outside The Bell Hotel in Epping chose to ignore counter-demonstrators and began singing. They sang Sweet Caroline and Come On Eileen while demonstrators from Stand Up To Racism chanted 'Nazi scum off our streets'. Essex Police said that residents have reported feeling 'trapped', fearful of leaving their homes and anxious about protest activity previously. Hotel residents and staff have been advised to remain indoors after 5pm as some have experienced verbal and physical harassment, including a resident chased and injured while returning to the hotel, the force added. Essex Police said there was an 'escalation of violence' during protests on July 13, 17, 20 and 24, involving hundreds of people. The force added that officers were assaulted, missiles were thrown, vehicles were vandalised and the hotel sustained broken windows and graffiti. The Epping protest was sparked by the charging of asylum seeker Hadush Gerberslasie Kebatu, 38, with sexual assault after he allegedly attempted to kiss a 14-year-old girl. He denied the charge at Chelmsford Magistrates' Court and will stand trial in August.