The U.S. Department of Health and Human Services (HHS) announced on Monday that it is referring Harvard University for administrative suspension and debarment proceedings. This action would prevent the university from entering into contracts with any government agency and from receiving any federal funding, including research grants and student financial aid.

If the debarment proceedings succeed, Harvard would lose a critical funding source, delivering a new financial blow to the institution following the Trump administration's freeze of over $2.6 billion in federal funding. Harvard has 20 days to request a hearing before an HHS administrative law judge to appeal this decision.

This marks the first time the Trump administration has threatened to completely sever federal funding support to Harvard, signaling a further escalation in this confrontation as settlement negotiations have reportedly reached an impasse.

Harvard University did not immediately respond to requests for comment.