A three-judge panel of the First U.S. Circuit Court of Appeals heard oral arguments Monday in Boston over whether U.S. District Judge Allison Burroughs had authority to restore billions of dollars in federal research funding that the Trump administration cut from Harvard University.

The administration had terminated or frozen more than $2.6 billion in grants, linking the action to Harvard's handling of antisemitism on campus after the university rejected demands for changes to its governance, admissions, hiring, and policies. Burroughs ruled in 2025 that the cuts violated the First Amendment and the Administrative Procedure Act, describing the antisemitism concerns as a potential smokescreen for ideological retaliation, and ordered the funds restored.

Justice Department attorney Michael Velchik argued before the panel that the dispute is contractual in nature and belongs in the U.S. Court of Federal Claims rather than district court. He maintained that Burroughs lacked power to order payment of the grants.

Harvard attorney Paul Clement countered that the claims involve constitutional and statutory violations beyond any contract, making district court the proper venue. The panel, consisting of Judges Sandra Lynch, Gustavo Gelpi, and Joshua Dunlap, a Trump nominee, questioned both sides but issued no immediate ruling.

The funding has resumed flowing to the university pending the appeal's outcome. The case stems from actions beginning in 2025 when the administration sought to address campus discrimination issues through funding conditions.