Trump Threatens Harvard's Tax-Exempt Status

News Update: 21.40 IST,  11.30 EST

In a dramatic escalation of tensions with higher education institutions, former President Donald Trump has threatened to revoke Harvard University's tax-exempt status, accusing the institution of defying federal directives.

After Harvard rejected sweeping policy changes proposed by the White House—reportedly concerning student admissions and faculty governance—Trump took to Truth Social, declaring that the university "should lose its Tax Exempt Status and be Taxed as a Political Entity" if it continues to resist the administration's demands.

"Tax-exempt status is totally contingent on acting in the public interest," Trump posted, signaling his administration's readiness to leverage the IRS against non-compliant institutions.

In response, Harvard President Alan Garber issued a letter to students and faculty, firmly rejecting the government's pressure. "We will not negotiate over our independence or our constitutional rights," he wrote, affirming the university’s stance against political interference in its academic affairs.

 

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News Published at 14.10  IST, 4.30 EST

Harvard University is facing a dramatic financial standoff after the Donald Trump administration froze $2.2 billion in federal funding, escalating tensions over a list of controversial demands issued by the U.S. Department of Education.

The demands—sent in early April—included dismantling DEI (diversity, equity, inclusion) offices, increasing cooperation with immigration authorities for student screenings, and imposing sweeping changes to admissions, hiring, and campus governance. A second, more detailed letter sent Friday added a requirement for auditing the political views of students and faculty.

Harvard publicly rejected the demands, with President Alan Garber stating in a letter: “We will not negotiate over our independence or constitutional rights. No government should control what a private university teaches or whom it hires and admits.”

The administration’s Joint Task Force to Combat Anti-Semitism responded swiftly by suspending multi-year grants worth $2.2 billion and halting $60 million in active government contracts. It criticized Harvard’s stance, saying: “Harvard’s response today reflects a mindset of entitlement that must be addressed. Taxpayer funding carries with it the duty to uphold civil rights protections.”

This funding freeze comes amid campus unrest nationwide over Israel’s war in Gaza, with protests erupting at multiple institutions. Harvard is among 60 universities under investigation for alleged anti-Semitic incidents.

In a sharp contrast, Columbia University has agreed to comply with similar federal directives. Two student organizers of pro-Palestinian protests at Columbia are now facing legal action by immigration authorities.

Adding to the legal pushback, the Harvard chapter of the American Association of University Professors (AAUP), along with the national AAUP, has filed a lawsuit and a temporary restraining order (TRO) against the Trump administration. The legal challenge accuses the administration of using federal funding as a coercive tool to suppress free speech and undermine academic freedom. The suit seeks to block enforcement of the administration’s demands and preserve access to the $8.7 billion in federal funds tied to Harvard and its affiliates.

Harvard, which reported a $45 million surplus on $6.5 billion in revenue last fiscal year, now faces a high-stakes legal and political confrontation that could redefine the balance of power between elite academic institutions and the federal government.

(with inputs from IANS)

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