Trump Threatens Harvard’s Tax-Exempt Status Amid Federal Funding Freeze

President Donald Trump escalated his administration’s standoff with Harvard University this week, threatening to strip the institution of its tax-exempt status just hours after freezing more than $2 billion in federal research funds.

In a post on Tuesday on Truth Social, a social media group owned by Trump, he accused Harvard of promoting a “political, ideological, and terrorist-inspired/supporting sickness,” suggesting the university should be taxed as a political entity if it fails to align with what he calls “the public interest.”

The move follows a sweeping letter from the Department of Education demanding the Ivy League university overhaul its hiring, admissions, and academic practices—requirements officials claim would address antisemitism on campus. Among the 10 categories of proposed changes were federal audits of academic departments, mandated viewpoint diversity, and disciplinary actions for students involved in campus protests.

Harvard rejected the demands on Monday. In a statement, President Alan Garber said the university, “will not surrender its independence or relinquish its constitutional rights,” arguing that the majority of proposed changes amounted to direct government control over academic freedom.

Though framed as part of a crackdown on antisemitism, the White House demands also follow months of criticism from conservative leaders who claim elite universities have become ideological battlegrounds. The Education Department formally froze $2.2 billion in grants and $60 million in contracts to Harvard as of Monday.

Losing its tax-exempt status could cost the university millions annually. Harvard’s endowment currently stands at $53 billion.

White House Press Secretary Karoline Leavitt on Tuesday doubled down, stating, “President Trump wants to see Harvard apologize.”

Meanwhile, some faculty members and lawmakers have spoken out. Harvard history professor David Armitage told the BBC the university would, “pay any price for freedom,” describing the administration’s actions as “groundless and vengeful.” Rep. Elise Stefanik (R-NY) called for a total cutoff of taxpayer funding to Harvard.

Harvard professors have filed a lawsuit, alleging the government is unlawfully targeting academic freedom and speech. The legal fight adds to a broader political clash between higher education institutions and the Trump administration, which has already revoked funding from Columbia University and threatened other top campuses.

Polling from Gallup suggests declining public trust in higher education across party lines, particularly among Republicans, many of whom believe universities advance political agendas.

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