Trump Revokes Harvard’s Tax-Exempt Status After Reform Showdown
US President Donald Trump on Friday announced the revocation of Harvard University’s tax-exempt status, escalating a standoff over campus reforms and federal funding.
In a sharp escalation of his administration’s standoff with Harvard University, President Donald Trump declared the end of the university’s tax-exempt status, accusing it of rejecting needed reforms and abusing privileges.
“We are going to be taking away Harvard’s Tax Exempt Status. It’s what they deserve!” Trump posted on his social media platform on Friday. The announcement follows Harvard’s defiance of White House demands that included sweeping changes to admissions, campus policies, and governance structures.
The administration had also ordered the university to shut down certain student organisations and audit its diversity practices—demands Harvard rejected outright.
The decision follows a prior move earlier this month in which Trump froze over $2.2 billion in federal grants and $60 million in contracts to the Ivy League institution. According to officials, this was part of a broader effort to “hold elite institutions accountable.”
Reacting to the administration’s ultimatum, Harvard President Alan Garber said the university “will not surrender its independence or relinquish its constitutional rights.”
The Department of Education recently launched investigations into the operations of Harvard University and the Harvard Law Review, citing reports of race-based discrimination. The probe came days after congressional scrutiny into Ivy League institutions over alleged antisemitism on campuses and pro-Palestinian activism during the Gaza conflict.
Officials from the Trump administration claim the protests have emboldened extremism and anti-American rhetoric, prompting demands for disciplinary crackdowns and policy changes.
Harvard is the fifth Ivy League university to be targeted in what has become a high-stakes campaign by the Trump administration. Funding has already been suspended for the University of Pennsylvania, Brown, and Princeton as part of the same effort.
Trump, who has long positioned himself as an opponent of what he calls “liberal elitism” in academia, previously called Harvard “a disgrace” during an exchange with reporters.
With the university vowing to fight back, legal experts anticipate a constitutional battle over academic freedom, tax law, and federal oversight. Analysts say the case could reach the Supreme Court, especially if Harvard seeks judicial relief from the funding freeze and tax penalty.
Meanwhile, student organisations and civil rights groups have begun rallying in support of the university, warning that the administration’s moves threaten the autonomy of higher education nationwide.
