Trump says his administration is revoking Harvard’s tax-exempt status

Washington — President Trump said Friday his administration will be rescinding Harvard University’s tax-exempt status, further escalating the ongoing feud with the Ivy League school.

“We are going to be taking away Harvard’s Tax Exempt Status. It’s what they deserve!” the president said in a post to Truth Social.

Mr. Trump did not provide further details about the effort to strip Harvard of its designation as a 501(c)(3) organization, but he has floated taking such a step as recently as last month.

Roughly 2 million organizations have received tax-exempt status from the Internal Revenue Service, including charities like churches, environmental groups and universities. The designation means the groups are exempt from paying federal income taxes and the IRS considers donations to 501(c)(3) organizations to be tax-deductible.  

Mr. Trump’s decision is the latest in a series of moves targeting the university. His administration announced last month that it would be freezing $2.2 billion in grants and $60 million in contracts to Harvard after the university rejected a series of demands made by the administration. Among the conditions were for Harvard to discontinue its diversity, equity and inclusion programs, positions and initiatives, change its hiring practices and change its leadership. 

After the Trump administration announced it would be freezing the funding to Harvard, the university sued and alleged the move was unlawful. It’s likely a withdrawal of Harvard’s tax-exempt status will prompt further legal action.

CBS News reported last month that the IRS was considering stripping Harvard of its tax-exempt status, and Mr. Trump told reporters that he believed the school was abusing the designation. A Harvard spokesperson said at the time that there was no legal basis for revoking the tax-exempt status.

“The government has long exempted universities from taxes in order to support their educational mission,” the Harvard spokesperson said. “The tax exemption means that more of every dollar can go toward scholarships for students, lifesaving and life-enhancing medical research, and technological advancements that drive economic growth.”

Harvard has an endowment of $52.3 billion, the largest of all U.S. universities.