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Government's Cancelling Harvard Contracts Violated First Amendment, Judge Rules
From today's decision by Judge Allison Burroughs (D. Mass.) in President & Fellows of Harvard College v. U.S. Dep't of Health & Human Servs.:
Harvard asserts that the Defendants' actions in this case "violated Harvard's First Amendment rights in at least two ways: 1) by retaliating against Harvard based on the exercise of its First Amendment rights, and 2) by imposing content- and viewpoint-based burdens on those rights through the imposition of funding conditions that are unrelated to any legitimate government interest in combating antisemitic harassment or otherwise." Because of this, Harvard contends that "[t]he Freeze Orders and Termination Letters should be vacated and set aside, and any further similar action against Harvard should be permanently enjoined." …
The court concluded that the government's actions were unconstitutional retaliation for Harvard's exercise of First Amendment rights:
Harvard engaged in constitutionally protected conduct 1) when it refused the terms set forth in the April 11 Letter, which sought to control viewpoints at Harvard, and 2) when it filed this lawsuit. Defendants do not dispute that the latter constitutes protected conduct. As to the April 11 Letter rejection, there is "a zone of First Amendment protection for the educational process itself," that encompasses not only "the independent and uninhibited exchange of ideas among teachers and students," but also Harvard's "autonomous decisionmaking." The rights protected by the First Amendment include the right to "manage an academic community and evaluate teaching and scholarship free from [governmental] interference," as well as Harvard's "prerogative 'to determine for itself on academic grounds who may teach'" and what is taught in the "college classroom."
Defendants' April 11 Letter, on its face, was directed at these core freedoms, and Harvard's April 14 rejection, on its face, was aimed at preserving them. The April 11 Letter stated, in no uncertain terms, that the letter would constitute an "agreement in principle that w[ould] maintain Harvard's financial relationship with the federal government" but only if Harvard agreed to "audit the student body, faculty, and leadership for viewpoint diversity," report that audit to the government, and "hir[e] a critical mass of new faculty" and "admit[] a critical mass of students … who will provide viewpoint diversity."
It further required Harvard to "abolish all criteria, preferences, and practices, whether mandatory or optional, throughout its admissions and hiring practices, that function as ideological litmus tests;" to audit "programs and departments that … reflect ideological capture;" to "immediately shuttter all diversity, equity, and inclusion (DEI) programs, committees, positions, and initiatives … including DEI-based … speech control policies," and to demonstrate that it had done so "to the satisfaction of the federal government." In brief, the April 11 Letter purported to require Harvard to overhaul its governance, hiring, and academic programs to comport with the government's ideology and prescribed viewpoint….
Based on this administrative record, the Court is satisfied that Harvard's protected conduct was a substantial and motivating factor in the Freeze Orders and Termination Letters. Defendants contend, however, that Harvard's retaliation claim nonetheless fails because "the agencies' terminations are explained by a nonretaliatory purpose: opposing antisemitism," such that the government "would have terminated" the grants irrespective of Harvard's viewpoints. This argument does not carry the day.
Defendants have failed to meet their burden to show they acted with a non-retaliatory purpose for several reasons. First, as discussed, the April 11 Letter specifically conditioned funding on agreeing to its ten terms, only one of which related to antisemitism, while six related to ideological and pedagogical concerns, including who may lead and teach at Harvard, [HHSHarv_00000098–99 ("Governance and leadership reforms;" "Merit-Based Hiring Reform")], who may be admitted, [HHSHarv_00000099 ("Merit-Based Admissions Reform;" "International Admissions Reform")], and what may be taught, [HHSHarv_00000099–100 ("Viewpoint Diversity in Admissions and Hiring;" "Discontinuation of DEI")]. Additionally, Defendants' argument ignores that Harvard's April 14 letter rejected only the conditions it viewed as infringing on its First Amendment rights and, in fact, specifically agreed to discuss measures aimed at combatting antisemitism, [HHSHarv_00000104–105 ("Harvard remains open to dialogue about what the university has done, and is planning to do" to combat antisemitism)], an offer Defendants similarly disregarded when instituting the first funding freeze on the basis of "Harvard's statement[s]" hours later.
Moreover, although combatting antisemitism is indisputably an important and worthy objective, nothing else in the administrative record supports Defendants' contention that they were primarily or even substantially motivated by that goal (or that cutting funding to Harvard bore any relationship to achieving that aim). As discussed further infra, before the April 14
Freeze Order, Defendants had announced a funding review consistent with the goals of combatting antisemitism; the record, however, does not reflect that Defendants engaged in such a review, weighed the value of any grant, gathered any data regarding antisemitism at Harvard, or considered if and how terminating certain grants would improve the situation for Jewish students at Harvard.
Rather, all that Defendants learned between March 31 and April 14, 2025 was that Harvard would not capitulate to government demands that it audit, censor, or dictate viewpoints of staff and students. The fact that Defendants' swift and sudden decision to terminate funding, ostensibly motivated by antisemitism, was made before they learned anything about antisemitism on campus or what was being done in response, leads the Court to conclude that the sudden focus on antisemitism was, at best (and as discussed infra), arbitrary and, at worst, pretextual.
Thus, the Court is satisfied that Harvard is entitled to summary judgment on its claim for First Amendment retaliation on the face of the administrative record. The Court would be remiss, however, if it did not note that the summary judgment record also contains numerous exhibits and undisputed facts that go beyond the administrative record that speak to Defendants' retaliatory motive in terminating Harvard's funding.
Although Defendants now contend that Harvard's April 14 rejection and subsequent lawsuit had nothing to do with their decision to cut its funding, numerous government officials spoke publicly and contemporaneously on these issues, including about their motivations, and those statements are flatly inconsistent with what Defendants now contend. These public statements corroborate that the government-initiated onslaught against Harvard was much more about promoting a governmental orthodoxy in violation of the First Amendment than about anything else, including fighting antisemitism.
For instance, in the forty-eight hours following the April 14 Freeze Order, the President took to social media multiple times to talk about Harvard. He posted on Truth Social that Harvard is "a JOKE" that "should no longer receive Federal Funds." His stated concerns (which would later be echoed in the May 5 Freeze Order) were untethered from antisemitism and instead based entirely on Harvard's "hiring almost all woke, Radical Left, idiots and 'birdbrains' who are only capable of teaching FAILURE to students," including "two of the WORST and MOST INCOMPETENT mayors in the history of our Country," referring to Democratic mayors Bill de Blasio and Lori Lightfoot.
This post echoed his comments from a day earlier, when he opined, again on Truth Social, that "[p]erhaps Harvard should lose its Tax Exempt status and be Taxed as a Political Entity." Again, that post did not reference antisemitism explicitly but rather was focused on Harvard's "pushing political, ideological, and terrorist inspired/supporting 'Sickness[.]'" It was not until nearly ten days later that the President would call Harvard "Anti-Semitic," doing so in a Truth Social post that, in the same breath, called Harvard a "Far Left Institution" and a "Liberal mess, allowing a certain group of crazed lunatics to enter and exit the classroom and spew fake ANGER AND HATE."
A similar barrage followed Harvard's decision to litigate rather than settle this case, with Administration officials being clear about the connection between that decision and the funding cuts. In particular, on May 28, 2025, the Secretary of Education summarized the situation with Harvard, stating:
When we looked at different aspects of what Harvard was doing relative to anti- Semitism on its campuses they were not enforcing Title VI the way it should be. And we had conversations with President Garber and I expected that we would have more, but Harvard's answer was a lawsuit so that's where we find ourselves I think the President is looking at this as, OK, how, how can we really make our point[?]
The same day, during an interview in the Oval Office, the President himself said that Harvard is "hurting [itself]" by "fighting," contrasting Harvard with Columbia, who he noted "has been … very, very bad … But they're working with us on finding a solution." He declared that Harvard "wants to fight. They want to show how smart they are, and they're getting their ass kicked." His conclusion: "[E]very time [Harvard] fight[s], they lose another $250 million."
The court also held, for similar reasons, that "Defendants impermissibly imposed on Harvard content- and viewpoint- based funding conditions that were unrelated to any legitimate government interest."
"[The Supreme] Court has made clear that even though a person has no 'right' to a valuable governmental benefit and even though the government may deny him the benefit for any number of reasons … [i]t may not deny a benefit to a person on a basis that infringes … his interest in freedom of speech." … "[A] funding condition can result in an unconstitutional burden on First Amendment rights." Moreover, it is worth noting that the conditions here are particularly concerning because, as discussed, many of them were based on Harvard's "particular beliefs," NRA v. Vullo (2024), and sought to dictate the content of speech on campus and the "particular views taken by speakers on [particular] subject[s]," Rosenberger v. Rectors (1995). "On the spectrum of dangers to free expression, there are few greater than allowing the government to change the speech of private actors in order to achieve its own conception of speech nirvana." Moody v. NetChoice, LLC (2024).
The court also held that the government's action also constituted unconstitutional coercion in violation of the First Amendment. Finally, from the Conclusion:
This case, of course, raises complicated and important legal issues, but, at its core, it concerns the future of grants sponsoring research that promises to benefit significantly the health and welfare of our country and the world. Through the government's statements and actions, the fate of that research has now become intertwined with the issue of antisemitism at Harvard.
Antisemitism, like other types of discrimination or prejudice, is intolerable. And it is clear, even based solely on Harvard's own admissions, that Harvard has been plagued by antisemitism in recent years and could (and should) have done a better job of dealing with the issue. That said, there is, in reality, little connection between the research affected by the grant terminations and antisemitism. In fact, a review of the administrative record makes it difficult to conclude anything other than that Defendants used antisemitism as a smokescreen for a targeted, ideologically-motivated assault on this country's premier universities, and did so in a way that runs afoul of the APA, the First Amendment and Title VI. Further, their actions have jeopardized decades of research and the welfare of all those who could stand to benefit from that research, as well as reflect a disregard for the rights protected by the Constitution and federal statutes….
The First Amendment is important and the right to free speech must be zealously guarded. Free speech has always been a hallmark of our democracy. The Supreme Court itself has recognized that efforts to educate people, change minds, and foster tolerance all benefit from more open communication, not less. As Justice Brandeis wrote in the seminal case of Whitney California (1927), "[i]f there be time to expose through discussion the falsehood and fallacies, to avert the evil by the processes of education, the remedy to be applied is more speech, not enforced silence," or, in this case, the forced adoption of a political orthodoxy. As pertains to this case, it is important to recognize and remember that if speech can be curtailed in the name of the Jewish people today, then just as easily the speech of the Jews (and anyone else) can be curtailed when the political winds change direction.
Defendants and the President are right to combat antisemitism and to use all lawful means to do so. Harvard was wrong to tolerate hateful behavior for as long as it did. The record here, however, does not reflect that fighting antisemitism was Defendants' true aim in acting against Harvard and, even if it were, combatting antisemitism cannot be accomplished on the back of the First Amendment. We must fight against antisemitism, but we equally need to protect our rights, including our right to free speech, and neither goal should nor needs to be sacrificed on the altar of the other.
Harvard is currently, even if belatedly, taking steps it needs to take to combat antisemitism and seems willing to do even more if need be. Now it is the job of the courts to similarly step up, to act to safeguard academic freedom and freedom of speech as required by the Constitution, and to ensure that important research is not improperly subjected to arbitrary and procedurally infirm grant terminations, even if doing so risks the wrath of a government committed to its agenda no matter the cost….
There's a lot more in the 84-page opinion, but in this post I thought I'd focus on the First Amendment issues.
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I skipped ahead to the relief. There are four items. The first three set aside orders and termination letters under the Administrative Procedure Act. There might or might not be uncertainty about the precise scope of this relief. It looks like a procedurally proper use of the APA and I'm glad the court got the case overwith in months instead of years.
The fourth grants a broad injunction against all sorts of paperwork. In my opinion vacatur of final agency action under the APA should be the sole remedy.
I guess unlawful discrimination has found itself a safe haven under the First Amendment, at least with a federal judge with no jurisdiction in the first place. The judicial disgraces continue.
it's time for an amendment to the constitution that reads "any member of a demonic tribe whose ancestors wandered the desert and wear little hats or any person appointed by the nigger who illegitimately occupied the white house for 8 years is ineligible to hold any office, trust or judgeship of the united states"
Poe's Law??
The quality of the legal reasoning in these threads continues to be remarkable.
It’s terrible how those members of a demonic tribe whose ancestors wandered the desert and wear little hats are interfering with the Trump administration’s efforts to fight antisemitism.
So obviously moronic and offensive that I almost believe this is a leftist troll trying to instigate something. They do that from time to time. Although I concede that this could be a genuine moron.
Spoken like a true MAGA.
Not at all. Nothing MAGA whatsoever. If anything, the racist idiocy is more at home in the party of slavery, jim crow, and segregation. A good old fashioned democrat in other words.
Is this Blackman’s alt?
"as well as Harvard's "prerogative 'to determine for itself on academic grounds who may teach'" and what is taught in the "college classroom."
I mean...isn't this the same "prerogative" that those who wanted to just teach white people and not African Americans had? Seems an easy reversal on repeal.
No.
Yes.
"The rights protected by the First Amendment include the right to "manage an academic community and evaluate teaching and scholarship free from [governmental] interference,"
And if they choose to manage the academic community by removing people of a certain skin color....
No, because who you teach is conduct. What is taught is speech.
"who may teach"
And "what is taught." As far as "who may teach," if Harvard is discriminating on the basis of race, sex, etc., they are in violation of Title VI. But, not if they choose who may teach based on the viewpoint of the professor.
And Harvard has been found to be in violation of Title VI.
https://www.hhs.gov/press-room/hhs-finds-harvard-in-violation.html
That's a press release. It asserts much, and proves little.
The court held that this claim was a pretext for denying Harvard the funding.
"Who may teach" is not the same as "who may be a student."
For the purposes of discrimination and free speech...it essentially is.
If you're not letting students of a certain race in. Or teachers of a certain race in. Because of your "prerogative." It's the same argument.
"[the Court] also holds, however, that, given the current guidance from the Supreme Court, it lacks jurisdiction over the arbitrary and capricious claims as they pertain to the Termination Letters, and that any such claim based on the grant terminations must be brought in the Court of Federal Claims."
... but then the court says this must not apply because First Amendment and Calvinball, or something.
... and then pre-rebuts any perceived criticism about ignoring the NIH ruling in a Very Long Footnote. "Given this, however, the Court respectfully submits that it is unhelpful and unnecessary to criticize district courts for “defy[ing]” the Supreme Court when they are working to find the right answer in a rapidly evolving doctrinal landscape, where they must grapple with both existing precedent and interim guidance from the Supreme Court that appears to set that precedent aside without much explanation or consensus."
As noted by this court: "As relevant here, the Tucker Act vests jurisdiction in the Court of Federal Claims over “any claim against the United States founded either upon the Constitution, or any Act of Congress or any regulation of an executive department, or upon any express or implied contract with the United States, or for liquidated or unliquidated damages in cases not sounding in tort.”
(emphasis mine).
Easy to see how this will get tossed on appeal because it belongs in the court of Federal Claims, the long footnote and pre-rebuttal notwithstanding.
"I am not defying the Supreme Court... I just don't agree with it, so its very confusing!"
Seems like the admin should just spend the next three years sifting through every document harvard files and policy it has in place and hammer it to the max for each and every footfault. The message still gets across and it's legal, at least once you get past the circuit courts.
Your takeaway from "the government can't retaliate against Harvard for its speech with pretextual claims" is that the government should retaliate against Harvard for its speech with pretextual claims?
Nah, the government doesn't NEED pretextual claims, because it can retaliate against Harvard for illegal discrimination, not speech.
Whoosh!
Whoosh right back at you. The claims aren't pretextual, Harvard actually does violate Title IV. They barely make any effort to hide it, because they're proud to discriminate.
Please detail with citations of Harvard's pride.
Responding to a court's finding of pretext 'you're wrong, court!' is an opinion, but not a great discussion point.
Every large (and most small) organizations violate regs and laws all the time. It may be retalitory but it would not be pretextual to investigate the university and punish any infractions discovered. Sure, a judge could rule in harvards favor if they offer the retaliation defense, but on the flip side the answer also cannot be that harvard is immune from consequenses for all wrongdoing, or immune from investigation.
The government holds the handle of the hammer here and if I had to pick an ultimate winning side, it would not be the nail.
The argument is that Harvard has a First Amendment right not to have their grant money taken away because the US President doesn't agree with what they'd be doing with that money and said so on social media?
Seriously?
No. Not seriously. You don't understand the situation at all. The retaliation against Harvard had nothing whatsoever to do with "what Harvard would be doing with grant money."
Ok, I'll bite: are you saying that Trump's social posts kvetching that Harvard's DEI policies were a waste of money AREN'T the evidence that Harvard was being "discriminated" against based on its views?
No. I'm saying that Trump was not kvetching that Harvard's purported DEI policies were a waste of money. It's hard to see why it would be any of Donald Trump's business what Harvard spent its money on.
What you seem to be missing is that the grants that Harvard was getting did not involve the government saying, "Oh, you want some money? Sure. Have $100 million." These are research grants. Money given to individual professors to do cancer research or semiconductor research or whatever. Trump's complaint is not "We gave you $6 million to research a new chemotherapy drug and we didn't get $6 million worth of results, so we're terminating this grant." That'd have been entirely legitimate. It's "We gave you $6 million to research a new chemotherapy drug but you have woke professors in the English department and we don't like that, so we're terminating this grant."
Thanks, I think I understand you better now, but I'm still not getting how we get to the First Amendment through all this.
If I have a bunch of money to give to someone, it is obviously completely up to me who I'm going to give it to -- and for whatever reasons I decide. There's no "obligation" to give. It's a gift.
And if I decide to not give you the money because I don't like the cut of your jib, I'm not "preventing" you from sailing how you'd wish. You can sail all you want to -- just not with my cash.
It's the disconnect that gets me here.
Grants are not gifts.
Of course they are. They are completely voluntary.
Not once they are decided upon - once selected for a grant, there is a grant agreement - a contract signed by both parties.
The grantees agrees to submit reports, do some activity, and abide by terms and conditions. The grantor agrees to give the money over the period of performance.
Moreover, even 'completely voluntary' activities may be constrained by the Constitution. e.g. at-will employment does not mean you can fire someone based on race.
This applies to the government in ways it does not to private parties, including 1A.
Except when they don't, 'cause sometimes they won't.
https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR86b76dde0e1e9dc/section-200.340
Note in particular subsection (a)(4), where a federal grant may be terminated "to the extent authorized by law, if an award no longer effectuates the program goals or agency priorities."
Since grants are one of your things, I'm shocked you didn't already know that.
You linked to the termination part of the grants regs. Note that on the grantor side there needs to be a breach of the T&C. There is no termination for convenience:
I understand 2 CFR 200 is being updated to allow the government to terminate at will for convenience. (And to insist on a 15% indirect cost for all grants(!!))
I'm not at all sure that would allow termination for an unconstitutional reason, such as viewpoint.
"(1) By the Federal agency or pass-through entity if the recipient or subrecipient fails to comply with the terms and conditions of the Federal award;"
Are you suggesting that complying with Title VI isn't among those terms and conditions?
Your Harvard conspiracy is not before the court, Brett, though I know you are ever eager to relitigate it.
The T&C almost certainly include a clause about complying with federal law. But the administration has not made that the reason for the termination. Moreover, their demands of Harvard are not about complying with Title VI.
No kidding, Sherlock -- that would line up with the "a federal grant may be terminated" language in my post, in a thread debating whether "Harvard has a First Amendment right not to have their grant money taken away because the US President doesn't agree with what they'd be doing with that money."
That's apparently a word game, since again I specifically quoted the language "if an award no longer effectuates the program goals or agency priorities" in (a)(4).
Your understanding appears to be... not particularly accurate. 2 CFR 200 was already updated last year to require the potential for terminations under (a)(4) to be explicitly written into grants awarded after 10/1/24. Trump issued an EO last month to all agencies to automatically include that provision in all grants. Greenberg Traurig has a fairly straightforward writeup here.
Trump issued an EO last month to all agencies to automatically include that provision in all grants.
T&C are not retroactive - how could they be, given they are enforced based on grants agreement which are signed at the time of selection.
Who besides you said anything about retroactive?
The Harvard grants were largely all selected before the 2024 2 CFR 200 update, so the new language about agency priorities as a termination reason won't be there in the grants agreement.
You Trump apologists are just completely ignoring the actual facts here. The grants were not terminated because the award wasn't meeting objectives or the agency shifted priorities; the grants were terminated because Trump didn't like Harvard's ideology in ways completely unrelated to the grants. That's what makes it a legal problem for Trump.
And grants issued before October 1, 2024 could be canceled for agency priorities even if that specific language didn't appear in the grant -- that was the change to Section 200 last year, as I already said. You're just doing your thing of reflexively responding to fragments and not actually comprehending what I wrote.
Hi, welcome to our discussion about whether governmental grants can be terminated after they're made, sparked by Sarc's outrageous position "Not once they are decided upon." Since you're retreating back to the Harvard facts, I take it you agree he's ridiculously incorrect.
And even there, you're just plain wrong on the facts. The opinion clearly states: "Almost all of the Termination Letters cited a purported change in program goals or agency priorities as justification for the terminations and invoked 2 C.F.R. § 200.340(a)(4)."
You may well disagree, but neither you nor the judge are in the position of setting priorities for the agency or second-guessing those that are.
grants issued before October 1, 2024 could be canceled for agency priorities even if that specific language didn't appear in the grant
Yet again, T&C are not retroactive.
Neither is 2 CFR 200, which is guidance for agencies:
https://www.ecfr.gov/current/title-2/section-1.105
As noted in the opinion, the purported changes in program goals or agency priorities in two of the letters were (the third letter gave no explanation)
I'm at a loss as to how Harvard's alleged inaction relates to the program goals or agency priorities, so second-guessing seems appropriate. They might justify withholding funding under Title VI, but that's a separate question (also dealt with in favor of Harvard in the opinion).
One more time: Before the October 1, 2024 change, 2 CFR 200 allowed for termination due to agency priorities regardless of whether that possibility was specifically spelled out in the grant. That's (quite shockingly!) the reason the change was made.
Maybe take 15 seconds out of your unquestionably super-busy trolling schedule to independently confirm that so you don't keep making an ass out of yourself. It's not hard at all to track down given the general kerfuffle in this space this year with DOGE etc.
2 CFR 200, is guidance for agencies.
Grants policy is part of my job.
I know of no reason why "directing funding to schools that don't promote generally hostile antisemetic environments" or similar can't be a priority of the agency, regardless of whether you or Sarc or David think it's a good idea. To my eye, the opinion doesn't even try to rule out that sort of rationale -- it just says the agency didn't explain it to the judge's satisfaction.
Who else would be canceling a grant based on a change in agency priorities?
Feel free to articulate your point -- if you have one. It's sounding like nah.
2 CFR 200 does not give a special bonus authority to agencies that allows it to change the requirements contained within existing grants agreements.
I've not repeated this 3 times.
A simplified policy flow diagram:
2 CFR 200 ->Agencies->T&C->Grants Agreement->Grantees.
This is not a continuous process.
Even if the T&Cs are updated, that does not retroactively change the grants agreements.
Similarly, agencies don't continually update the T&Cs to reflect the latest guidance.
If you still don't get it, that's because you don't want to.
Yeah, you need to get out of your academic fart-sniffing bubble and get a better understanding of how grant termination actually works in the real world. There's a very nice writeup here by actual lawyers who do actual litigation in this space. Nut language:
Run along now to your next lazy trolling exercise -- this one is tapped out.
For a grant on cancer research funded by the NIH, the NIH does not care about alleged Title VI violations (that's a DOJ and DOE concern, the separate issue I previously mentioned).
Yes, but you aren't the government. You can discriminate in your personal gift giving to your heart's content, based on viewpoint, religion, even race. The government is not free to act that way; it is constrained by both the equal protection clause and the first amendment.
Trump withheld grant money because of what Harvard did with it's own money.
Which the government is entitled to do. Money is fungible. If you disagree with what someone is doing with their own money, you are free to decide not to subsidize it.
Interesting. So the government is free to terminate a federal contract because the federal contractor is Christian and tithes at church?
If the dispute is over a federal contract, it probably should be heard in the appropriate court for such disputes as per almost all of the recent cases on the same theme, and as will be decided on appeal soon before a single dollar gets back to the university. That's besides the point that this is the same district court judge as SFA v Harvard, and besides the point that turning a blind eye to an angry mob trapping Jewish students in a library beating on the doors and shouting death threats and then allowing said mob to prevent them from going to class intermittently for months is a bit beyond 'tithing at a church'. Does not justify Trump's demands, but does justify substantial policy changes to receive any federal funding. This case will 100% be decided at SCOTUS, and Harvard will have a partial victory with a lot of pain involved at best due to a lot of dirty laundry and already having a major SCOTUS loss along a similar issue (discrimination against Asian students) 2 years ago.
Well, a grant is normally NOT a contract for services. That obviously makes a difference. Under contractual rules, it may not be correct to withhold monies because of religious beliefs. But a grant is a gift. And yes, you can absolutely withhold your donation for any reason at all. It's voluntary.
In FCC v. League of Women Voters, SCOTUS held a grant to noncommercial stations could not be conditioned on the stations using their own money to editorialize.
Yes, this is the essential problem: a grant is a gift, it is not an obligation, and you can't force the square peg of the First Amendment into this round hole to help you.
If I decide to withhold MY donation of cash -- for whatever reason or frankly for no reason at all -- then that has no effect whatsoever on your right to do whatever you want to do with YOUR cash. And here's the important bit: this is true even if withholding my gift causes you to not be able to do what you want to right now.
What is a "right"? I think we've come to accept a rather warped sense of it. Having the right to do something means you are free to pursue it using whatever legit means are at your disposal, that's all. It is absolutely silent on whether you can actually attain it.
There are no guarantees in life.
Grants are not gifts.
Here is a sample grant agreement I Googled up. Article 16 and 17 talk about termination in the event of default. Note there is no termination for convenience clause:
https://www.sec.gov/Archives/edgar/data/1285819/000119312511067278/dex1045.htm
Did you read my link to FCC v. League of Women Voters?
A grant is an exercise of Congress' spending power. And while Congress can demand that the grant be spent only on things it wants because it is in effect government speech, the First Amendment prohibition on content and viewpoint discrimination against private speech precludes the government from conditioning a grant on what the recipient does with its own money.
Minor quibble in phrasing, though it's implied in what you said: the 1A prevents the government from conditioning a grant on what the recipient says with its own money. The government can still condition grants on (non-expressive) conduct of the recipient with the recipient's own money. For example, it could decide to only give grants to universities whose other activities are carbon neutral.