Prez Trump threatens to strip Harvard University of its tax-exempt status

The ongoing conflict between Harvard University and U.S. President Donald Trump intensified after the university refused to accept major policy changes ordered by the White House. In response, Trump threatened to revoke Harvard’s tax-exempt status.

Financial Setback and Federal Funding Freeze

Harvard is already facing significant financial repercussions after the Trump administration froze $2.2 billion in federal funding due to the university’s refusal to comply with a range of demands concerning governance, campus policies, and civil rights enforcement.

Trump’s Threat of Taxation as a Political Entity

Trump stated that if Harvard does not comply with his demands, it should lose its tax-exempt status and be taxed as a political entity. He emphasized that tax-exempt status should be based on acting in the public interest.

White House Demands and Reforms

The Trump administration’s demands, first issued in early April, included dismantling Diversity, Equity, and Inclusion (DEI) offices, cooperating with immigration authorities to screen international students, and implementing sweeping reforms in hiring, admissions, and governance. The administration escalated matters by sending a more detailed list of requirements, including an audit of political views among students and faculty.

Harvard’s Rejection and Commitment to Independence

Harvard responded publicly by publishing the letter and rejecting the proposed terms. In a letter addressed to students and faculty, Harvard President Alan Garber reaffirmed the university’s stance: “We will not negotiate over our independence or constitutional rights.” Garber added that no government should dictate what a private university teaches or whom it hires and admits.

Federal Grant Suspension and Task Force Response

In response to Harvard’s refusal, the Trump administration’s Joint Task Force to Combat Anti-Semitism announced the suspension of multi-year federal grants amounting to $2.2 billion and the halting of $60 million in existing government contracts. The task force criticized Harvard’s response, stating that taxpayer funding requires upholding civil rights protections.

Context of Campus Protests

This development comes amid rising tensions on U.S. campuses, many of which have been affected by protests related to the Hamas-Israel war in Gaza. Some of these protests have escalated into confrontations with law enforcement and counter-protesters. Critics, including President Trump and several Republican lawmakers, have accused student protesters of supporting Hamas, which is designated by the U.S. government and many other nations as a terrorist organization.