Is Trump Really Going to Revoke Harvard's Tax-Exempt Status?

Synopsis
Key Takeaways
- Trump threatens Harvard’s tax-exempt status.
- Legal battle between Harvard and the Trump administration.
- Harvard's funding frozen over policy disagreements.
- Concerns over academic freedom and government intervention.
- Implications could resonate across higher education.
New York, May 3 (NationPress) US President Donald Trump has reiterated that Harvard University could potentially lose its tax-exempt status, emphasizing his plan to involve the Internal Revenue Service (IRS) in his ongoing conflict with the university, which may significantly disrupt its financial stability.
"We are going to revoke Harvard's Tax Exempt Status. It's what they deserve!" Trump expressed on social media on Friday.
Despite this, an official from the administration indicated that the President's social media comments did not constitute an official request to the IRS for action, as reported by The Wall Street Journal.
This statement from Trump follows Harvard's recent legal action against the administration, setting the stage for a legal battle between the nation’s foremost university and the White House, as noted by Xinhua news agency.
The lawsuit contends that the government has infringed upon the university's constitutional rights by suspending billions of dollars in federal funding, thereby jeopardizing its academic freedom.
Trump's administration has withheld over $2 billion in federal funding to Harvard, a decision that led the institution to file suit after it declined to make policy adjustments, including the termination of programs focused on diversity, equity, and inclusion.
Earlier this week, Harvard declared it would be renaming its "Office for Equity, Diversity, Inclusion, and Belonging" to "Community and Campus Life".
The university also announced it would cease hosting or financing celebrations of affinity groups during commencement, as reported by The Harvard Crimson.
Furthermore, on Tuesday, the school released two internal reports addressing how anti-Semitism and anti-Israeli sentiments are managed on campus, along with another report on anti-Muslim, anti-Arab, and anti-Palestinian biases.
A White House official referred to these changes as "positive" but indicated that the university must take further steps to address perceived anti-Israel sentiments on campus.
White House spokesperson Harrison Fields stated that any actions from the IRS would be independent of the President’s statements and that any audits or investigations had been initiated prior to Trump’s social media post.
Representatives from the IRS did not respond to inquiries made on Friday.
The tax legislation mandates that any IRS employee receiving an improper request from the White House must report it to the US Treasury Inspector General for Tax Administration, whose office also did not respond to queries.
Harvard, recognized as the oldest and wealthiest university in the nation, contended that revoking its tax-exempt status would be both illegal and unprecedented. This position was supported by organizations advocating for free speech and other non-profit entities.
"There is no legal justification for rescinding Harvard's tax-exempt status," the Boston-based university stated.
"Improper use of this mechanism could have severe ramifications for the future of higher education in the United States."
Since his inauguration in January, Trump has focused on US universities, freezing federal funding, initiating investigations, revoking visas for international students, and making various demands.
Trump, a member of the Republican Party, has claimed that higher education is infused with anti-Semitic, anti-American, Marxist, and radical left ideologies.
Recently, the Trump administration has intensified its campaign against Harvard by freezing federal grants, seeking information regarding its foreign affiliations, and threatening its capacity to recruit international students.
The freeze on grants was implemented after Harvard rejected and condemned what it termed illegal demands from the Trump administration, which included requests to audit the perspectives of its faculty and students, enlist external auditors to review several departments, prohibit face masks and certain diversity initiatives, and restructure its governance.