Trump's Tax Exemption Threat: Harvard University Faces Financial Showdown
Harvard's Tax Status Under Fire
New York: President Donald Trump has declared that Harvard University may lose its tax-exempt status, intensifying his ongoing dispute with the institution and threatening its financial stability.
On social media, Trump stated, "We are going to be taking away Harvard's Tax Exempt Status. It’s what they deserve!"
Despite this bold claim, an official from the administration clarified that the President's post was not an official order for the IRS to take action, as reported by a major news outlet.
This statement follows Harvard's recent lawsuit against the Trump administration, which has set the stage for a significant legal battle between the prestigious university and the White House.
The lawsuit contends that the government has infringed upon the university's constitutional rights by freezing billions in federal funding, thereby threatening its academic autonomy.
In response to Harvard's refusal to implement certain policy changes, including the elimination of diversity and inclusion programs, Trump froze over $2 billion in federal funds, prompting the university to take legal action.
Earlier this week, Harvard announced a rebranding of its 'Office for Equity, Diversity, Inclusion, and Belonging' to 'Community and Campus Life'.
Additionally, the university revealed it would cease hosting or funding affinity group celebrations during commencement, according to reports from a local news source.
On Tuesday, Harvard released two internal reports addressing how anti-Semitism and anti-Israeli bias are managed on campus, alongside another report focusing on anti-Muslim, anti-Arab, and anti-Palestinian bias.
A White House official described these changes as 'positive' but indicated that more action is needed to address perceived anti-Israel bias at the university.
White House spokesperson Harrison Fields noted that any IRS actions would be separate from the President's comments, emphasizing that audits or investigations were already underway prior to Trump's post.
The IRS did not provide comments when approached for clarification on the matter.
According to tax regulations, any IRS employee receiving an improper request from the White House must report it to the US Treasury Inspector General for Tax Administration, who also did not respond to inquiries.
Harvard, recognized as the oldest and wealthiest university in the United States, stated that revoking its tax-exempt status would be both illegal and unprecedented, a sentiment echoed by free-speech advocacy groups and other non-profits.
"There is no legal basis to rescind Harvard's tax-exempt status," the university asserted in a statement.
"The unlawful use of this instrument more broadly would have dire implications for the future of higher education in America."
Since his inauguration, Trump has targeted universities across the nation by freezing federal funding, initiating investigations, revoking visas for international students, and imposing various demands.
The President has claimed that higher education is plagued by anti-Semitic, anti-American, Marxist, and radical left ideologies.
In recent weeks, the Trump administration has intensified its campaign against Harvard by freezing federal grants, demanding information about its foreign connections, and threatening its capacity to enroll international students.
This grant freeze followed Harvard's rejection of what it termed illegal demands from the Trump administration, which included requests to audit the opinions of faculty and students, engage external auditors for departmental reviews, ban face masks, and eliminate certain diversity initiatives.