Trump Targets Harvard: IRS Weighs Revoking Tax-Exempt Status

Trump Targets Harvard: IRS Weighs Revoking Tax-Exempt Status

In a move drawing fierce controversy and legal scrutiny, the Internal Revenue Service (IRS) is reportedly considering revoking Harvard University’s tax-exempt status, following public demands from President Donald Trump. The request, first reported by CNN and confirmed by the Washington Post, comes amid Trump’s escalating campaign against elite institutions of higher education, which he has accused of promoting “political, ideological, and terrorist-inspired” agendas.

On Tuesday, President Trump took to his social media platform, Truth Social, stating:

“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?’ Remember, Tax Exempt Status is totally contingent on acting in the PUBLIC INTEREST!”

Despite federal law prohibiting presidential interference in IRS investigations, the Trump administration has reportedly urged the agency’s top attorney to initiate action against Harvard. A White House spokesperson, Harrison Fields, claimed that the IRS’s investigation began independently, prior to the president’s public remarks.

Harvard Responds

Harvard University has denied any wrongdoing. Spokesman Jason Newton told USA Today, “There is no legal basis to rescind Harvard’s tax-exempt status. The unlawful use of this instrument more broadly would have grave consequences for the future of higher education in America.”

Political Ramifications and Financial Stakes

Legal experts note that charitable institutions like Harvard are exempt from federal taxes under U.S. law, provided they avoid political engagement. No evidence has surfaced indicating Harvard has violated these provisions. However, if revoked, Harvard could lose billions in tax benefits and donor incentives.

According to Nathan Goldman, tax law professor at North Carolina State University, Harvard could be forced to pay taxes on revenue from its massive endowment, and donors would lose their ability to claim deductions on charitable gifts.

Academic Community Rallies

Stanford and other leading universities have voiced support for Harvard, denouncing what they call a politically motivated attack on academic freedom. The U.S. Department of Education has also reportedly frozen $2.3 billion in federal funds to Harvard, intensifying the standoff.

During a Thursday press conference, Trump reiterated his criticism:

“Tax exempt status, I mean, it’s a privilege. It’s really a privilege, and it’s been abused by a lot more than Harvard. It’s something that these schools really have to be very, very careful with.”

As of now, no final IRS decision has been announced. But the clash signals a deeper battle over the role of academia in American political life—and whether tax law will be weaponized in that fight.