Harvard University is facing an unprecedented barrage of financial and political pressure from the Trump administration, including threats to revoke its tax-exempt status and freeze billions in federal funding. The university has responded with firm resistance and internal reforms, while senior faculty rally to support the institution’s academic independence.
On Friday, President Donald Trump announced on Truth Social, “We are going to be taking away Harvard’s tax-exempt status. It’s what they deserve!” The Internal Revenue Service (IRS) had reportedly begun preparing to act on Trump’s earlier threat, though the legality of such a move remains in question. “There is no legal basis to rescind Harvard’s tax-exempt status,” a university spokesperson told CNN, warning that such an action would compromise Harvard’s educational mission and reduce financial aid, research output, and innovation.
Under U.S. law, the IRS operates independently and cannot be directly instructed by the president. The agency has not responded publicly to questions about how or whether Trump’s order would be carried out.
This latest threat follows a series of escalating actions by the administration, including the freezing of more than $2 billion in federal research funding and demands that Harvard overhaul its campus governance. The administration’s list of ultimatums includes eliminating diversity, equity, and inclusion (DEI) programs, banning masks at protests, and turning over disciplinary records for international students.
In response, Harvard filed a lawsuit last week challenging the funding freeze. President Alan Garber said the cuts would have “stark real-life consequences,” noting that much of the federal money supports medical and scientific research.
Dozens of senior faculty members have pledged to donate 10% of their salaries to help offset the financial toll.
“This signals our commitment as faculty members to use means at our disposal to protect the university and, especially, staff and students who do not have the same protections,” organizers wrote in their pledge. The collective donation is expected to total about $2.5 million.
Harvard has also taken steps to address concerns about campus antisemitism and bias, releasing two internal reports and sharing some data with the Department of Homeland Security. While the administration has acknowledged these as “positive” actions, officials told CNN that more funding could still be cut.
Despite the mounting pressure, Harvard has maintained a firm stance. “The University will not surrender its independence or relinquish its constitutional rights,” Garber said.
