The best source I've seen for understanding the underlying power dynamics at play is the DHS's Press Release:
https://www.dhs.gov/news/2025/05/22/harvard-university-loses...Here's the beginning:
WASHINGTON – Today, Homeland Security Secretary Kristi Noem ordered DHS to terminate the Harvard University’s Student and Exchange Visitor Program (SEVP) certification.
This means Harvard can no longer enroll foreign students and existing foreign students must transfer or lose their legal status.
Harvard’s leadership has created an unsafe campus environment by permitting anti-American, pro-terrorist agitators to harass and physically assault individuals, including many Jewish students, and otherwise obstruct its once-venerable learning environment. Many of these agitators are foreign students. Harvard’s leadership further facilitated, and engaged in coordinated activity with the CCP, including hosting and training members of a CCP paramilitary group complicit in the Uyghur genocide.
“This administration is holding Harvard accountable for fostering violence, antisemitism, and coordinating with the Chinese Communist Party on its campus,” said Secretary Noem. “It is a privilege, not a right, for universities to enroll foreign students and benefit from their higher tuition payments to help pad their multibillion-dollar endowments. Harvard had plenty of opportunity to do the right thing. It refused. They have lost their Student and Exchange Visitor Program certification as a result of their failure to adhere to the law. Let this serve as a warning to all universities and academic institutions across the country.”
On April 16, 2025, Secretary Noem demanded Harvard provide information about the criminality and misconduct of foreign students on its campus. Secretary Noem warned refusal to comply with this lawful order would result in SEVP termination.
This action comes after DHS terminated $2.7 million in DHS grants for Harvard last month.
Harvard University brazenly refused to provide the required information requested and ignored a follow up request from the Department’s Office of General Council. Secretary Noem is following through on her promise to protect students and prohibit terrorist sympathizers from receiving benefits from the U.S. government.
I think a fair answer might be that this immediate action is primarily about Israel, and Harvard's toleration and apparent support of organizations that the US government considers to be terrorists. Harvard has quite consciously taken an antagonistic approach here, and the government feels it is responding in kind.
Secondarily, it's about the way that elite schools have aligned themselves with the progressive politics associated with the Democratic party. Harvard is the target here because they are strongest, not necessarily because they are the most liberal. If the government can humble Harvard, they expect that all the weaker institutions will fold without a fight.