Federal Appeals Court Hears Challenge to Harvard’s Billion‑Dollar Federal Funding Claim

On Oct. 6, 2026, a three‑judge panel of the U.S. Court of Appeals for the First Circuit heard arguments challenging Harvard University’s claim to billions of federal research funding.

Government lawyer Michael Velchik told the judges that the district court that ordered the government to pay the grants “lacked jurisdiction” and that there is “no First Amendment right to money.” He argued the dispute is fundamentally a contract issue that belongs in the U.S. Court of Federal Claims.

Velchik noted that after a 2019 district‑court ruling, Harvard received $385 million in National Institutes of Health grants and $50 million in National Science Foundation grants—totalling $435 million that he said were unlawfully awarded because the district court exceeded its authority.

Harvard’s counsel, former solicitor general Paul Clement, countered that the First Amendment protects the university’s academic freedom and that cutting off funding would cause irreparable injury to speech and research on campus.

The case arrives as Harvard’s legal expenses surged to $126.6 million last year, the highest among Ivy League schools, while the university also faces budget pressure from a new endowment tax and reduced foreign‑student enrollment.

Velchik referenced comparable treatment of Columbia University to argue the government is not singling out Harvard. He also cited recent donor actions, noting that philanthropist Ken Griffin, after naming Harvard’s graduate school, announced a $3 billion gift to Carnegie Mellon University.

Judge Sandra Lynch praised Harvard’s remedial steps in recent Title VI settlements but warned that a favorable ruling might not end the litigation, suggesting further battles could lie ahead.

Legal scholars note that the outcome could set a precedent for how large private universities pursue federal research dollars, potentially influencing future contract disputes and the balance of power between academic institutions and the federal government.

The panel is expected to issue a decision later this year, and Harvard is scheduled to return to the First Circuit on Oct. 6 for a separate case concerning student visas.