As I understand it, that’s the legal effect of SFFA. SFFA sued Harvard seeking, among other things, a declaratory judgment that Harvard’s admissions policies violate Title VI. The district court ruled, after bench trial, that Harvard didn’t violate Title VI. The Supreme Court didn’t remand for further proceedings, it outright reversed. Meaning that it found that Harvard’s procedures did violate Title VI.
Bad faith or malice aren’t elements of a Title VI violation. And I don’t see any legal reason why an administration couldn’t hold Harvard’s discrimination against students—which happened, even if the Supreme Court changed its mind about whether it was permissible—against Harvard in allocating federal funding.
Moreover, Harvard’s defiant response to SFFA provides a reasonable basis for the administration to believe it has continued to engage in discrimination: https://news.harvard.edu/gazette/story/2023/06/harvard-unite...
Of course, now that Harvard has decided to fight it, the administration will have to prove its belief: https://www.axios.com/2025/04/28/harvard-law-review-trump-ad.... That’s how these enforcement letters always pan out. Many targets fold to avoid litigation. Sometimes, a defendant fights it and the government has to initiate a formal enforcement action.
The DOJ, FDA, FTC, and SEC do stuff like this all the time. These agencies all lean very heavily on the threat of an enforcement action to enforce changes in private behavior without having to actually take entities to court.