Government intends to rescind Harvard's tax-free status, according to Trump; Harvard president deems such action as unlawful.
Here's Trump's Latest Dig at Harvard: Stripping its Tax-Exempt Status
Trump's feud with Harvard University has escalated as he's threatened to take away their tax-exempt status, leaving the Ivy League school's president to push back hard against this controversial move.
"Prepare to lose your tax-exempt status, Harvard!" Trump announced Friday morning on Truth Social.
In response, Harvard President Alan Garber swiftly fired back, calling the action "highly illegal" and "destructive" in an interview with The Wall Street Journal.
Trump's idea of removing Harvard's tax-exempt status has been in the works since April, amid a broader power play over free speech, political ideology, and federal funding across American academia.
If carried out, Harvard's education and research would be "severely impaired," a university spokesperson told CNN. The loss of tax-exempt status would also lead to financial struggles, jeopardizing financial aid for students, cutting valuable medical research programs, and thwarting opportunities for innovation.
Yet, presidents lack the authority to order the IRS to investigate or revoke a university's tax-exempt status. Such a decision would require due process, formal notification, and an opportunity for the university to defend itself.
Democratic Sen. Ed Markey of Massachusetts described Trump's actions as an attempt to force Harvard to comply with his ideology and called the move unconstitutional. He argued that the disruption and negative impact on life-saving research and people's livelihoods far outweighed any justification for this political clash.
"I stand with Harvard against the overreach of the Trump administration," Markey said. "I stand with Harvard in demanding due process."
While the White House has argued that its aim is a crackdown on antisemitism, scholars and Jewish organizations have expressed concerns over its far-reaching attacks on Harvard. The university has taken some symbolic steps toward the Trump administration’s demands, but Harvard's president has stressed the importance of maintaining independence and constitutional rights.
This story has been updated with additional information.
Key Insights:
- Presidents cannot unilaterally revoke a university’s tax-exempt status.
- If attempted, Harvard would face financial struggles, including loss of federal income taxes' exemption and possibly state/local taxes.
- Separately, the administration is freezing $2 billion in grants, alleging antisemitism and noncompliance with federal demands, which could force cuts to research, financial aid, and public service initiatives.
- Trump’s threats risk politicizing the IRS, undermining trust in tax administration, and potentially inviting legal challenges. Historically, courts have blocked IRS actions influenced by political pressure.
- Despite Trump's announcement to revoke Harvard's tax-exempt status, presidents lack the authority to order such action without due process.
- If carried out, the potential loss of Harvard's tax-exempt status could lead to significant financial struggles, impacting student financial aid, research programs, and opportunities for innovation.
- The White House's claimed aim of combating antisemitism has raised concerns among scholars and Jewish organizations over its broad attacks on Harvard.
- Democratic Sen. Ed Markey of Massachusetts stands with Harvard, calling Trump's actions an attempt to force compliance with his ideology and a potential violation of constitutional rights.
- The administration's alleged freezing of $2 billion in grants to Harvard over antisemitism and noncompliance with federal demands could force cuts to research, financial aid, and public service initiatives, adding to the university's financial woes due to the potential loss of tax-exempt status.
