Topline
The IRS may revoke Harvard University’s tax-exempt status after it refused to agree to a list of White House demands school administrators said blurred the lines of academic freedom, multiple outlets reported Wednesday—potentially following through on a threat President Donald Trump made Tuesday.
Key Facts
The IRS was “making plans” to revoke Harvard’s tax-exempt status—which most public and private colleges and universities qualify for as non-profits with educational missions—though no final decision had been made, according to CNN, which first reported the move.
The IRS oversees tax-exempt organizations’ compliance with the Internal Revenue Code and can revoke their status for a variety of reasons, including political campaign activity, lobbying and failing to meet annual reporting obligations.
Reports that Trump asked the IRS to revoke Harvard’s status comes after the Trump administration on Monday froze $2.2 billion in federal funding and a $60 million federal contract for the school when it refused to accept a proposal with the White House antisemitism task force investigating more than 60 colleges and universities’ handling of pro-Palestinian protests on their campuses.
The proposal “makes clear the intention is not to work with us to address antisemitism in a cooperative and constructive manner,” Harvard president Alan Garber wrote on the school’s website, adding most of the administration’s request “represent direct governmental regulation of the ‘intellectual conditions’ at Harvard.”
Trump first made the suggestion Harvard’s status should be revoked Tuesday in a post on Truth Social, writing that “tax exempt status is totally contingent on acting in the PUBLIC INTEREST!”
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How Will Harvard’s Foreign Student Enrollment Be Affected?
In a separate announcement on Wednesday, Department of Homeland Security Secretary Kristi Noem said she was terminating $2.7 million worth of grants from the the agency to Harvard. The DHS secretary also wrote to the university demanding “detailed records on Harvard’s foreign student visa holders’ illegal and violent activities by April 30, 2025,” failing which the institute could lose Student and Exchange Visitor Program (SEVP) certification. If Noem follows through with her threat, Harvard could lose its ability to enroll foreign students.
What Did Noem’s Letter To The University Say
According to the student newspaper Harvard Crimson, Noem’s letter accused the university of creating a “hostile learning environment” for its Jewish students. The letter demands that Harvard’s administrators provide information regarding international students who made “threats to other students or university personnel,” or obstructed the university’s “learning environment.” The DHS secretary has also sought details on any disciplinary actions taken by the university against such international students. Noem’s letter adds: “It is a privilege to have foreign students attend Harvard University, not a guarantee.”
How Has Harvard Responded To Noem’s Threats?
A spokesperson for the university told CNN that they were aware of the letter but stand by their earlier statement that they “will not surrender its independence or relinquish its constitutional rights.” The statement added: “If federal action is taken against a member of our community, we expect it will be based on clear evidence, follow established legal procedures, and respect the constitutional rights afforded to all individuals.”
What To Watch For
CNN reported Wednesday afternoon that a “final decision” from the IRS was expected soon. The IRS is the only entity with the power to change an organization’s tax status—Trump could not do it on his own.
Key Background
The Trump administration accused Harvard in a letter last week of failing to “live up to both the intellectual and civil rights conditions that justify federal investment” and instructed it to adhere to a list of demands to continue receiving federal funding. The Trump administration said Harvard must implement “merit-based” hiring and admissions policies and “cease all preferences based on race, color, religion, sex, or national origin.” The letter also instructs the university to “commission an external party” to audit “programs with egregious records of antisemitism or other bias” and to “immediately shutter” all diversity, equity and inclusion initiatives, programs and policies. The university must also harden its student disciplinary procedures, including using “the Harvard police when necessary,” the letter states. Garber broadly rejected the terms of the letter, making Harvard the first university to refuse to comply with requirements stemming from the antisemitism task force investigations. The letter, “violates Harvard’s First Amendment rights and exceeds the statutory limits of the government’s authority under Title VI,” Garber wrote. He said the university has “taken many steps to address antisemitism on our campus” over the past 15 months and plans to “do much more.”
Crucial Quote
Stanford University President Jonathan Levin and Provost Jenny Martinez applauded Harvard for resisting the Trump administration’s demands in a statement to The Stanford Daily. “Harvard’s objections to the letter it received are rooted in the American tradition of liberty, a tradition essential to our country’s universities, and worth defending,” they wrote. Stanford is among multiple universities the Trump administration is threatening to withhold federal funding for if it does not make changes to various programs and policies.
Tangent
The Trump administration has threatened federal funding for multiple colleges and universities unless they agrees to make changes on issues varying from transgender inclusion and protest policies to security practices and educational programs. Columbia University agreed last month to hire a new security force, adopt a new definition of antisemitism and overhaul its Middle Eastern, South Asian and African Studies Department to recoup $400 million in federal funding and contracts the Trump administration froze over its handling of pro-Palestinian protests.
Further Reading
Columbia Agrees To Trump Administration’s Demands After Losing $400 Million In Federal Funds (Forbes)
Trump Administration Freezes $2.2 Billion In Harvard Federal Funding After University Refuses To Comply With Demands (Forbes)
IRS making plans to rescind Harvard’s tax-exempt status (CNN)
Trump administration asks IRS to revoke Harvard’s tax-exempt status (Washington Post)
