In a renewed confrontation with Harvard University, President Donald Trump reiterated his threat on Friday to revoke the prestigious institution’s tax-exempt status. This marks an intensification of tensions with one of the first major universities to refuse the administration’s attempts to suppress campus activism. Despite federal laws that prevent senior executive branch members from directing the IRS regarding audits or investigations, the White House insists that any IRS actions will occur independently of the president.
From Palm Beach, Florida, where Trump is spending the weekend, he wrote on social media, “We are going to be taking away Harvard’s Tax Exempt Status. It’s what they deserve!” The origin of Trump’s scrutiny towards Harvard’s tax status stems from the university’s non-compliance with demands for significant institutional reforms, changes in leadership, alterations to its admissions processes, and evaluations of how diversity is managed on campus. This defiance led to the administration withholding more than $2 billion in federal grants from the school.
Harvard responded on Friday, asserting that there is no legal justification for revoking its tax-exempt status, highlighting potential negative consequences. A statement from the university emphasized, “Such an unprecedented action would endanger our ability to carry out our educational mission. It would result in diminished financial aid for students, abandonment of critical medical research programs, and lost opportunities for innovation. The unlawful use of this instrument more broadly would have grave consequences for the future of higher education in America.”
The Treasury Department initiated steps to revoke Harvard’s tax-exempt status shortly after Trump’s comments, although White House sources suggest IRS scrutiny began before the president’s public statements. This has prompted accusations from Democrats that the move is politically motivated. Senate Minority Leader Chuck Schumer and Massachusetts Senators Elizabeth Warren and Ed Markey, alongside Ron Wyden from Oregon, have requested an investigation into whether the administration’s actions infringe upon Harvard’s rights.
Concerns have been raised over constitutional issues, including whether the president’s actions impinge on Harvard’s free speech rights and whether revoking its tax status would strip the university of due process. The senators addressed these concerns in a letter to Heather Hill, the acting Treasury inspector general for tax administration.
Mike Kaercher, a deputy director at NYU’s Tax Law Center, pointed out, “Overwhelming bipartisan majorities in Congress have enacted laws making it a crime for the President and his staff to request an audit or investigation of a particular taxpayer.” An IRS representative did not comment on the matter.
This clash highlights a larger administration effort, which they claim focuses on combating antisemitism on college campuses. However, it also aligns with Trump’s narrative of challenging elite institutions, which resonates with his supporter base. In a recent commencement address at the University of Alabama, Trump stated, “The next chapter of the American story will not be written by The Harvard Crimson,” but by the attendees, referencing both Harvard’s student newspaper and Alabama’s football program known as the Crimson Tide.
Besides attempting to end Harvard’s tax-exempt status and stopping federal grants, the administration is also seeking to restrict the university’s ability to enroll international students.