Harvard's two-year old work study program is being threatened with a substantial cut in Federal funds.

Charles D. Ehrensperger '59, director of the program, said Monday that the New England Bureau of the U.S. Office of Education has warned him that Harvard's share of the work-study funds may be cut in half beginning July 1.

Faced with this cut, Ehrensperger has not hired any new students for term-time employment since January and has turned away 150-200 needy students seeking summer jobs. The Holyoke Center office is attempting, however, to find summer jobs for those already in the program.

The college work-study program, established by the Higher Education Act of 1965, provides universities with Federal funds that pay 90 per cent of needy students' wages for term-time and summer work in non-profit, secular organizations.

Harvard does not have any rigorously standard of need and currently employs some 240 students in the program.

Ehrensperger expected to be told in March how much money he would have for the summer and next fall, but still has not been notified.

The delay has resulted from the growing number of schools competing for the $134.1 million in Federal program, James W. Moore, director of the division of student financial aid in the U.S. Office of Education, said yesterday.

Harvard may not even get enough money to continue supporting all the students now in the program, Ehrensperger said. As a temporary step the student employment office is trying to find enough summer jobs with private companies for work-study students to fall back upon if lack of funds displaces them from their present jobs.

What Harvard will do next fall if forced to curtail its program is still an open question. Despite the increasing number of colleges seeking work-study funds, the Office of Education has not sought a significantly higher amount of program money for the coming fiscal year. It has requested only an additional $5 million and even that may be cut by Congress before the request is funded.