Rep. Elise Stefanik (R-NY) urged the US Securities and Exchange Commission on Tuesday to investigate Harvard University -- claiming her alma mater possibly withheld "material information" from investors in recent bond offerings amid the fiery stand-off with the Trump administration over federal funding.
In a letter fired off to SEC chairman Paul Atkins, Stefanik alleged the Ivy League hadn't been transparent and noted that the timing of the offerings, which came just days after the White House revealed it was putting Harvard under the microscope for compliance with civil rights law and potential restrictions on federal grant funding and contracts, were cause for "concern."
The congresswoman -- herself a 2006 Harvard College graduate -- said it signaled, too, that Harvard possibly already knew it would reject the White House's demands to crackdown or risk losing funding -- and then failed to disclose that looming decision to its investors.
"There is reason to believe Harvard withheld material information from bondholders, including a decision to reject White House conditions related to a civil rights investigation prior to its initial offering and only disclosed that fact days later in a supplemental filing," Stefanik wrote.
She claimed that a supplemental disclosure issued to investors on April 15 cited risks related to the ongoing conflict with the feds -- including a push to crack down on antisemitism on campus and end alleged "race discrimination" in its admission and hiring processes.
Stefanik argued, though, that investors should have been made aware of the "significant additions" when the bonds were first offered up on April 9.
"Such a failure would represent a material omission under federal securities law," Stefanik argued.
"Investors were asked to analyze risk without knowing the full extent of Harvard's exposure to reputational and funding related fallout from a conflict with the federal government. If Harvard had indeed made its decision by April 9 and did not disclose it, this would warrant serious scrutiny."
The congresswoman suggested the Ivy League's fresh borrowing spree of more than $1.2 billion in taxable bonds -- on top of Harvard's $7.9 billion in existing debt -- raised questions about its short and medium term liquidity.
"As a tax-exempt institution with immense influence over public policy, academic standards, and federal research funding, Harvard should be held to the highest standard of financial transparency," she wrote.
"Market participants deserve complete, timely, and accurate disclosures especially when institutions seek access to public capital markets while under federal investigation."
The letter is the latest escalation in a broader battle between Harvard and the White House as the President Trump forges ahead to compel universities -- which he has long accused of left-wing bias -- to get in line with his agenda.
It comes several weeks after the Trump administration issued a number of demands for the elite school -- warning they wouldn't be eligible for additional federal funds if they didn't comply.
When the school refused to play ball, the administration yanked an estimated $3.2 billion in contracts and grants.
Harvard and the SEC did not immediately respond to requests for comments.