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Trump Moves to Revoke Harvard’s Tax-Exempt Status
In a fresh confrontation between political authority and academic institutions, former U.S. President Donald Trump announced his intention to revoke Harvard University’s tax-exempt status, accusing the prestigious Ivy League school of being biased and politically compromised. The announcement came via Trump’s personal social media platform, where he stated, “We are going to be taking away Harvard’s Tax Exempt Status. It’s what they deserve!”
This move is seen as part of a broader campaign by Trump to crack down on what he has often described as liberal strongholds in academia. His administration has repeatedly voiced frustration over campus policies related to free speech, ideological representation, and alleged institutional bias. The latest targeting of Harvard, however, has elevated the clash to a new level.
Harvard University issued a firm rebuttal to Trump’s statement, asserting there is “no legal basis to rescind” its tax-exempt status. The university cautioned that revoking the exemption could threaten its capacity to provide financial aid, fund medical research, and support various educational missions.
Legal experts have also weighed in, pointing out that a U.S. president does not possess unilateral authority to influence the Internal Revenue Service to target a specific institution. Any such action, they argue, would violate federal laws designed to keep the IRS independent from political directives.
Underlying this political maneuver is an ongoing legal battle. The Trump administration had earlier frozen over $2.2 billion in federal funds to Harvard, alleging non-compliance with government initiatives addressing antisemitism on campus. Harvard has responded with a lawsuit challenging the legality of that funding freeze, making this conflict as much about legal interpretation as political ideology.
Meanwhile, leading Democrats have criticized the attempt to weaponize tax policy, warning of the risks of using federal power for partisan retaliation. Senators and civil liberty groups have urged oversight committees to investigate the matter, calling it a dangerous encroachment on academic freedom.
Financially, the implications are considerable. Harvard’s endowment—one of the largest globally—is valued at approximately $53 billion. Currently enjoying tax benefits under a 1.4% levy, a forced switch to the corporate tax rate of 21% could see the university’s resources diminish by over $500 million annually.
This is not the first time Trump has clashed with elite educational institutions, but the targeted threat against Harvard has sparked widespread concern across the academic landscape. Universities across the U.S. are watching closely, bracing for what could be a defining moment in the relationship between federal authority and institutional independence.
