Trump declares he's revoking Harvard's tax-exempt status
President Donald Trump announced on Friday that his administration plans to revoke Harvard University’s tax-exempt status, heightening tensions with the nation’s oldest institution of higher learning. “We are going to be taking away Harvard’s...
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President Donald Trump announced on Friday that his administration plans to revoke Harvard University’s tax-exempt status, heightening tensions with the nation’s oldest institution of higher learning.
“We are going to be taking away Harvard’s Tax Exempt Status,” Trump stated in a social media post. “It’s what they deserve!”
Harvard, as well as numerous other universities across the United States, enjoys tax exemptions because they are classified as nonprofits under section 501 of the U.S. tax code.
Although the IRS has the authority to revoke Harvard’s tax-exempt status, it must demonstrate that the university has violated the established criteria for such exemptions. This process is likely to be extensive, and Harvard would have the right to contest the decision in court — a scenario many experts believe the university would probably win.
“There is no legal basis to rescind Harvard’s tax-exempt status,” a Harvard spokesperson remarked in a statement. “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 IRS did not provide an immediate response to a request for comment.
Trump’s recent social media update reflects the ongoing conflict between his administration and the esteemed university.
The Trump administration initiated a review of nearly $9 billion in federal grants and contracts with Harvard, citing its treatment of Jewish students as a violation of Title VI of the Civil Rights Act, particularly during campus protests related to the Israel-Hamas war last year.
The administration has already rescinded more than $2 billion in federal funding and is considering another $1 billion in grant cuts. In response, Harvard is suing the administration, arguing that the extensive demands imposed by Trump’s antisemitism task force for reinstating the funding were unreasonable.
A few weeks ago, Trump had already threatened Harvard's tax-exempt status, and the Department of Homeland Security hinted at potentially revoking the university’s ability to enroll international students, who represent about 27 percent of its total enrollment and are an essential revenue source. The Education Department is also investigating the university’s foreign funding.
Last month, the president took to social media to question whether Harvard “should lose its Tax Exempt Status and be Taxed as a Political Entity.”
Reportedly, the IRS began looking into this shortly afterward, although it is illegal for government officials to influence the IRS to audit or investigate specific taxpayers.
The White House has asserted that the president would not be involved in any inquiry from the tax agency regarding Harvard. Nonetheless, Senate Democrats, including Minority Leader Chuck Schumer, are calling on the IRS's watchdog to investigate whether the administration is unlawfully pressuring the agency to remove Harvard’s tax exemption.
House Democrats have also voiced their concerns regarding the president's social media post.
Rep. Richard Neal, the leading Democrat on the House Ways and Means Committee, commented that "Harvard has done nothing wrong." He described the president's efforts to revoke the university's tax-exempt status as a form of "weaponizing" the government to target institutions, a sentiment previously echoed by Republican lawmakers such as Sen. Ted Cruz and Rep. Jim Jordan.
“I couldn’t have said it better myself,” Neal remarked, referencing related video clips.
Emily Johnson for TROIB News
“We are going to be taking away Harvard’s Tax Exempt Status,” Trump stated in a social media post. “It’s what they deserve!”
Harvard, as well as numerous other universities across the United States, enjoys tax exemptions because they are classified as nonprofits under section 501 of the U.S. tax code.
Although the IRS has the authority to revoke Harvard’s tax-exempt status, it must demonstrate that the university has violated the established criteria for such exemptions. This process is likely to be extensive, and Harvard would have the right to contest the decision in court — a scenario many experts believe the university would probably win.
“There is no legal basis to rescind Harvard’s tax-exempt status,” a Harvard spokesperson remarked in a statement. “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 IRS did not provide an immediate response to a request for comment.
Trump’s recent social media update reflects the ongoing conflict between his administration and the esteemed university.
The Trump administration initiated a review of nearly $9 billion in federal grants and contracts with Harvard, citing its treatment of Jewish students as a violation of Title VI of the Civil Rights Act, particularly during campus protests related to the Israel-Hamas war last year.
The administration has already rescinded more than $2 billion in federal funding and is considering another $1 billion in grant cuts. In response, Harvard is suing the administration, arguing that the extensive demands imposed by Trump’s antisemitism task force for reinstating the funding were unreasonable.
A few weeks ago, Trump had already threatened Harvard's tax-exempt status, and the Department of Homeland Security hinted at potentially revoking the university’s ability to enroll international students, who represent about 27 percent of its total enrollment and are an essential revenue source. The Education Department is also investigating the university’s foreign funding.
Last month, the president took to social media to question whether Harvard “should lose its Tax Exempt Status and be Taxed as a Political Entity.”
Reportedly, the IRS began looking into this shortly afterward, although it is illegal for government officials to influence the IRS to audit or investigate specific taxpayers.
The White House has asserted that the president would not be involved in any inquiry from the tax agency regarding Harvard. Nonetheless, Senate Democrats, including Minority Leader Chuck Schumer, are calling on the IRS's watchdog to investigate whether the administration is unlawfully pressuring the agency to remove Harvard’s tax exemption.
House Democrats have also voiced their concerns regarding the president's social media post.
Rep. Richard Neal, the leading Democrat on the House Ways and Means Committee, commented that "Harvard has done nothing wrong." He described the president's efforts to revoke the university's tax-exempt status as a form of "weaponizing" the government to target institutions, a sentiment previously echoed by Republican lawmakers such as Sen. Ted Cruz and Rep. Jim Jordan.
“I couldn’t have said it better myself,” Neal remarked, referencing related video clips.
Emily Johnson for TROIB News
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