Harvard responds after Trump vows to revoke university's tax exempt status

The National

02-05-2025

US President Donald Trump on Friday said he would revoke the university's tax exempt status. It was not immediately clear if he had the statutory authority to unilaterally strip Harvard's tax-exempt status and any attempt is likely to end up being decided by the courts. 'We are going to be taking away Harvard's Tax Exempt Status. It's what they deserve!' he wrote on Truth Social. Under US tax law, universities, churches, various non-profits and charities fall under the 501(c) 3 tax exemption. A change to this status could have ramifications for other universities beyond Harvard, and potentially churches and non-profit organisations. A Harvard spokesperson didn't mince words when asked for a response from The National to President Trump's social media post, saying there was no legal basis for him to rescind Harvard's tax-exempt status. 'The government has long exempted universities from taxes in order to support their educational mission," the spokesperson said. "The tax exemption means that more of every dollar can go toward scholarships for students, lifesaving and life-enhancing medical research, and technological advancements that drive economic growth." The spokesperson, also described Mr Trump's vow as unprecedented, and said that if it came to fruition, would endanger Harvard's ability to carry out its educational mission my diminishing financial aid for students and abandoning medical research programmes." "The unlawful use of this instrument more broadly would have grave consequences for the future of higher education in America," Harvard's spokesperson added. President Trump didn't expand on how he would remove Harvard's tax exempt status. His approach in his second term thus far has been to issue far-reaching decrees and see what ends up being rejected by the courts. It's the latest in a series of back-and-forth volleys between Mr Trump and Harvard, one of the world's most prestigious universities. The university last month announced plans to sue the Trump administration to stop a freeze on billions of dollars in funding. The lawsuit, filed in federal court, accuses the Trump administration of an unconstitutional campaign to 'punish Harvard for protecting its constitutional rights', according to the university's newspaper, The Crimson. The Trump administration withheld funding from Harvard, Columbia and other universities in response to their tolerance of pro-Palestinian demonstrations, in what it has described as a failure to control anti-Semitism on campus. 'The trade-off put to Harvard and other universities is clear: allow the government to micromanage your academic institution or jeopardise the institution's ability to pursue medical breakthroughs, scientific discoveries and innovative solutions,' Harvard's lawyers wrote in April. The Trump administration's decision to cut funding to Harvard followed $400 million in cuts to Columbia University in New York over accusations that the institutions tolerated anti-Semitism on campus. In recent weeks, the White House called for sweeping changes as to how Harvard is governed, and sought to influence the university's hiring practices and admissions procedures. It has also sought an increase in deciding how Harvard operates its diversity offices and to what extent it co-operates with immigration screenings for international students. Harvard has largely balked at those attempts, both in press statements to the media and in lawsuits.