Trump Threatens Harvard's Tax-Exempt Status Over Governance Dispute

Former U.S. President Donald Trump has issued a stark warning to Harvard University, suggesting that the institution could lose its tax-exempt status if it continues to defy federal demands for sweeping reforms in governance and campus oversight.

The warning comes amid a deepening standoff between the university and the Trump administration, which recently announced the suspension of more than $2.2 billion in federal funding to Harvard. The move follows Harvard’s refusal to implement changes demanded by the government, including revisions to its student discipline policies and internal governance structures.

Writing on his Truth Social platform, Trump stated:
“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!”

The message adds to growing unease across U.S. higher education institutions over what many perceive as an intensifying campaign by the federal government to penalize universities it claims are failing to address antisemitism on campus.

Federal Pressure on U.S. Universities Grows

According to White House spokesperson Karoline Leavitt, the administration is considering broad measures including revoking the tax-exempt status of certain universities and revising the accreditation framework that currently qualifies institutions for federal funding and student loan programs.

“I think a lot of Americans are wondering why their tax dollars are going to these universities when they are not only indoctrinating our nation’s students but also allowing such egregious illegal behaviour to occur,” Leavitt said.

She further emphasized the administration’s position:
“The President’s stance is grounded in the simple principle that no student—Jewish or of any faith—should face illegal harassment on college campuses. Sadly, we witnessed such discrimination occur at Harvard.”

Harvard Refuses to Back Down

In a rare and defiant statement, Harvard President Alan Garber rejected the administration’s demands, citing concerns over academic independence and constitutional rights.

“The University will not surrender its independence or relinquish its constitutional rights,” Garber said, framing the dispute as a fundamental question of academic freedom.

Harvard is the first major academic institution to openly resist the administration’s measures. In contrast, Columbia University in New York agreed to federal demands after the government froze $400 million in grants. However, those funds have not been reinstated, and officials now plan to impose a court-supervised consent order on the university.

Academia Pushes Back

Signs of collective resistance are emerging across the academic community. Stanford University President Jonathan Levin defended Harvard’s position, emphasizing the broader implications of government intervention in education.

“Harvard’s objections are rooted in the American tradition of liberty—essential to our universities and worth defending,” Levin said.
“Constructive change won’t come by destroying our nation’s capacity for scientific research or taking federal control of private institutions.”

Several networks of faculty members have filed lawsuits challenging the administration’s actions, while broader legal efforts are underway to reverse grant freezes that impact diversity, equity, and inclusion programs.

Universities are also contesting new federal caps on indirect costs for research grants distributed by key agencies such as the National Institutes of Health and the Department of Energy.

As tensions rise between the federal government and the academic sector, the outcome of Harvard’s resistance could set a precedent for how U.S. universities navigate questions of autonomy, public funding, and political influence in the years ahead.

Stay tuned to The Horizons Times for more updates on this unfolding story.