Trump Threatens Harvard Tax Status After University Defies Federal Demands

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Trump Threatens Harvard Tax Status After University Defies Federal Demands

President Donald Trump has escalated his confrontation with Harvard University, suggesting the institution should lose its tax-exempt status just hours after his administration froze over $2 billion in federal funding to the school.

The White House has demanded Harvard implement significant changes to its hiring, admissions, and teaching practices, ostensibly to combat antisemitism on campus. Since returning to office, Trump has targeted elite universities by threatening to withhold federal research funds unless they comply with his administration’s requirements.

Harvard became the first major US university to reject these demands on Monday, with university officials accusing the White House of attempting to “control” their community. Trump responded Tuesday morning on Truth Social, targeting Harvard’s valuable tax exemption: “Perhaps Harvard should lose its Tax Exempt Status and be Taxed as a Political Entity if it keeps pushing political, ideological, and terrorist inspired/supporting ‘Sickness?’ Remember, Tax Exempt Status is totally contingent on acting in the PUBLIC INTEREST!”

The loss of tax-exempt status, which universities share with many charities and religious groups, could cost Harvard millions annually.

The White House demands, outlined in a letter obtained by the New York Times, would substantially transform Harvard’s operations, including requirements to report students “hostile” to American values to the federal government, ensure “viewpoint diversity” in academic departments, hire government-approved auditors for programs “that most fuel antisemitic harassment,” and screen faculty for plagiarism.

Trump has accused leading universities of failing to protect Jewish students during last year’s campus protests against the Gaza war and US support for Israel. The letter mandates disciplinary action for protest “violations.”

Harvard President Alan Garber explained the university’s rejection, stating Harvard would not surrender its independence or First Amendment rights. “Although some of the demands outlined by the government are aimed at combating antisemitism, the majority represent direct governmental regulation of the ‘intellectual conditions’ at Harvard,” he wrote.

The Department of Education immediately froze $2.2 billion in grants and $60 million in contracts to Harvard, stating: “Harvard’s statement today reinforces the troubling entitlement mindset that is endemic in our nation’s most prestigious universities and colleges.”

Harvard history professor David Armitage told the BBC that as the richest university in the US, Harvard could afford to resist, calling the administration’s actions “groundless and vengeful” attempts to “silence freedom of speech.”

In March, the administration began reviewing approximately $256 million in federal contracts and grants at Harvard, plus $8.7 billion in multi-year commitments. Harvard professors responded with a lawsuit alleging unlawful attacks on freedom of speech and academic freedom.

Harvard, with its $53 billion endowment, is one of several elite universities targeted by the new presidency. Columbia University recently agreed to certain White House demands after losing $400 million in federal funding, drawing criticism from students and faculty.

Public confidence in higher education has declined among Americans across political backgrounds, according to Gallup polling, with Republicans showing the steepest drop amid perceptions that universities push political agendas.

On Monday, an organizer of pro-Palestinian protests at Columbia University was reportedly detained by immigration officials during a citizenship application interview. Mohsen Mahdawi, a green card holder set to graduate next month, was detained in Vermont. Other campus protesters have faced similar detentions in recent weeks.

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