WASHINGTON - President Donald Trump declared his intentions to strip Harvard University of its tax-exempt status, intensifying his clash with the prestigious institution.
"We are going to be taking away Harvard's Tax Exempt Status. It's what they deserve!" Trump announced on Truth Social on May 2.
The decision to use executive power to revoke Harvard's tax-exempt status, a designation held by most U.S. colleges and universities, is likely to face legal challenges in federal court. The Internal Revenue Service grants tax exemptions based on federal law.
Trump, who had previously threatened to target Harvard's tax-exempt status, accused the university of being an "anti-Semitic, far-left Institution."
In April, his administration announced a freeze of over $2 billion in federal funding for Harvard after the school refused to comply with a list of demands from the Trump administration, including a mask ban and removal of diversity programs.
"There is no legal basis to revoke Harvard's tax-exempt status," Harvard spokesman Jason Newton stated. "Such a move would jeopardize our educational mission."
Prior to Trump's announcement, a group of Senate Democrats requested an investigation into the plan to revoke Harvard's non-profit status.
Harvard responded to the funding freeze by suing the Trump administration, alleging threats to the school's academic independence.
Trump has frequently criticized the elite university, emphasizing the importance of other educational institutions.
Similar to other non-profit colleges, Harvard is exempt from federal and state income taxes. While the president may not have unilateral authority to revoke tax-exempt status, there are processes for the IRS to do so. A bill introduced by Republicans aims to give more power to target colleges' tax exemptions.
Harvard receives significant federal funding, supporting research and innovation at the university. The endowment of $53.2 billion is the largest in the U.S., with most funds restricted.
Newton warned that revoking Harvard's tax-exempt status would have severe consequences for financial aid, research programs, and innovation in higher education.
(This story has been updated with more information.)