President Trump on Tuesday floated the idea of revoking Harvard University’s tax exempt status, an escalation of the funding fight between the federal government and the Ivy League school.
“Perhaps Harvard should lose its Tax Exempt Status and be Taxed as a Political Entity if it keeps pushing political, ideological, and terrorist inspired/supporting ‘Sickness?'” Trump posted on Truth Social. “Remember, Tax Exempt Status is totally contingent on acting in the PUBLIC INTEREST!”
Most private, nonprofit colleges and universities are exempt from paying federal income taxes because they are classified as a 501(c)(3) organization with an educational mission. Universities do pay other taxes, such as payroll taxes for employees.
The Trump administration on Friday demanded Harvard change numerous policies, including around protesting and diversity, equity and inclusion programs, in order to keep its federal funding. It was the latest effort by the Trump administration to crack down on colleges and universities seen as being too far left or hostile toward Jewish students following the Hamas attack on Israel on Oct. 7, 2023.
Harvard on Monday rejected the administration’s demands.
“No government — regardless of which party is in power — should dictate what private universities can teach, whom they can admit and hire, and which areas of study and inquiry they can pursue,” Harvard President Alan Garber said in his message.
The Trump administration promptly froze more than $2 billion in grants to Harvard, but the university’s response earned praise from prominent Democrats.
“Harvard has set an example for other higher-ed institutions – rejecting an unlawful and ham-handed attempt to stifle academic freedom, while taking concrete steps to make sure all students at Harvard can benefit from an environment of intellectual inquiry, rigorous debate and mutual respect. Let’s hope other institutions follow suit,” former President Obama posted on the social platform X.
