The Trump administration on Monday announced a freeze on 2.2 billion U.S. dollars in multi-year grants and a 60 million contract to Harvard University, hours after the university rejected a list of demands from the federal government.

Earlier in the day, Harvard refused to comply with the administration's demands to make sweeping changes to the univeristy's governance, hiring and admissions practices, noting that it will not "negotiate over its independence or its constitutional rights."

"We have informed the administration through our legal counsel that we will not accept their proposed agreement," Harvard University President Alan M. Garber wrote in a letter to members of the Harvard Community. "The administration's prescription goes beyond the power of the federal government."

The administration's demands include: adopting and implementing merit-based hiring and admissions policies, and ceasing all preferences based on race, color and national origin; reforming the recruitment, screening and admissions of international students to prevent admitting students hostile to U.S. values and institutions, including students supportive of terrorism or antisemitism; reforming programs with "egregious records of antisemitism" and shutting down all diversity, equity and inclusion programs.

Since taking office in January, the Trump administration has issued warnings to several top U.S. universities that they could face funding cuts if they do not adjust their policies. The administration's main demands include eliminating what it describes as anti-Semitism on campus and dismantling diversity initiatives that favor minority groups.

Against the backdrop of the Israel-Palestine conflict, many universities across the United States saw a wave of pro-Palestinian protests last year, drawing increased government attention to alleged anti-Semitic sentiments on campuses.

"The disruption of learning that has plagued campuses in recent years is unacceptable. The harassment of Jewish students is intolerable. It is time for elite universities to take the problem seriously and commit to meaningful change if they wish to continue receiving taxpayer support," the Joint Task Force to Combat Anti-Semitism said in a Monday statement.

Columbia University, which was at the heart of last year's pro-Palestinian protests, became the first institution to face consequences, losing 400 million dollars in federal funding last month. University officials said they are currently in ongoing discussions with the administration to have the funding reinstated.

Federal funding for other institutions, including Cornell University and Northwestern University, has also been frozen and is currently under investigation.