The U.S. Department of Justice notified courts it will appeal a judge’s ruling in favor of Harvard in a dispute over federal funding, setting up a renewed legal test over the administration’s efforts to condition or challenge funding tied to campus practices. The appeal signals continued federal scrutiny of higher education institutions and may elevate funding and compliance questions to higher courts. Campus leaders and general counsels should expect more aggressive federal enforcement and litigation tied to grant conditions, civil rights, and institutional policies. The appeal preserves uncertainty for Ivy League and research universities that rely on federal grants and may influence institutional risk assessments, external relations, and legal reserves. If the government prevails at appellate levels, colleges could face new constraints on federal dollars and tighter federal oversight. Conversely, another judicial rebuke would bolster institutions’ arguments against political leverage over grant decisions.