On May 2, 2025, President Donald Trump announced plans to revoke Harvard University’s tax-exempt status, intensifying his administration’s campaign against elite U.S. universities. In a post on his social media platform, Trump stated, “We are going to be taking away Harvard’s Tax Exempt Status. It’s what they deserve!” However, he did not provide a timeline or legal basis for this action.
Harvard responded by calling the move “unlawful and unprecedented,” asserting that there is no legal foundation for rescinding its tax-exempt status. The university warned that such a decision could have severe consequences for higher education in the U.S., potentially reducing funds available for scholarships, medical research, and technological innovation.
Under U.S. federal law, the Internal Revenue Service (IRS) determines the tax-exempt status of organizations, and the president does not have the authority to direct IRS investigations. As of now, the IRS has not commented on Trump’s statement.
Most universities are exempt from federal income tax under the U.S. tax code because they are deemed to be operated exclusively for public educational purposes.
Trump’s administration has escalated its fight against Harvard in recent weeks, probing its nearly $9 billion in federal funding, seeking details on its foreign ties and threatening its ability to enroll foreign students. The administration has also demanded a ban on diversity, equity and inclusion practices, a crackdown on some pro-Palestinian groups and a mask ban.
This development is part of a broader effort by the Trump administration to scrutinize major U.S. universities. Actions have included freezing federal funding, initiating investigations into hiring practices and foreign affiliations, and threatening to revoke the ability of institutions to enroll international students. Harvard has filed a lawsuit against the administration, challenging the legality of these measures and defending its commitment to academic freedom and institutional autonomy.
The situation continues to evolve, with significant implications for the relationship between the federal government and higher education institutions.
On Wednesday, Trump suggested he would withhold grants.
Harvard has pushed back, suing the administration over the halted U.S. research funding and other demands, and joining more than 200 university and college president in protesting Trump’s higher education policies.
Trump said he was considering an end to Harvard’s tax-exempt status in a separate social media post on April 15, when annual U.S. tax returns are due, but did not say how he would do it.
White House spokesperson Harrison Fields last month said any forthcoming IRS actions were independent of the president and that any tax status investigations were initiated before Trump’s post.
Source: Reuters
