Trump Threatens Harvard’s Tax Status After Freezing Funds

Trump Threatens Harvard’s Tax Status After Freezing Funds 1

President Trump threatened Harvard University’s tax-exempt status on Tuesday after the school rebuffed his administration’s demands for a series of policy changes, a dramatic escalation in the feud between the president and the nation’s richest and oldest university.

The threat came a day after the Trump administration halted more than $2 billion in federal funding for Harvard because the university rejected changes to its hiring and admissions practices and curriculum. Mr. Trump decided to ratchet up his pressure campaign after watching news coverage of Harvard’s resistance on Monday night, according to a person with knowledge of the president’s deliberations, who spoke on the condition of anonymity to discuss private conversations.

“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?’” Mr. Trump posted on Truth Social on Tuesday morning. “Remember, Tax Exempt Status is totally contingent on acting in the PUBLIC INTEREST!”

White House officials said Tuesday that the Internal Revenue Service would make its decision about Harvard’s tax-exempt status independently, but the president has made clear in private that he has no intention of backing down from the fight with the university.

Losing its tax-exempt status could over time cost Harvard billions of dollars.

It’s the latest turn in a battle between Mr. Trump and academia more broadly, in which the Trump administration threatened to withhold billions in federal funding from various colleges and universities, ostensibly as a way to purge “woke” ideology from America’s college campuses. Trump officials have suggested that schools like Harvard have been hotbeds of antisemitism, elitism and suppression of free speech.

Federal law prohibits the president from “directly or indirectly” telling the I.R.S. to conduct specific tax investigations, and it is unclear whether the agency would actually move forward with an investigation. A spokeswoman for the I.R.S. declined to comment.