Washington, May 2: In a dramatic escalation of tensions with one of the nation’s most prestigious academic institutions, U.S. President Donald Trump on Friday announced plans to strip Harvard University of its tax-exempt status.
The move marks the latest in a series of retaliatory actions following the university’s rejection of sweeping federal demands.
“We are going to be taking away Harvard’s tax-exempt status. It’s what they deserve!” Trump declared on his social media platform, intensifying a standoff that began earlier this month when his administration froze over $2.2 billion in federal grants and an additional $60 million in contracts awarded to the university.
The administration’s demands included significant reforms in university governance, admissions policies, and campus activities. Among them were calls for an audit of diversity perspectives, restrictions on certain student organizations, and measures to limit campus activism.
Harvard refused to comply, with university president Alan Garber issuing a firm response: “We will not surrender our independence or relinquish our constitutional rights.”
The confrontation has placed Harvard, based in Cambridge, Massachusetts, at the center of a broader federal campaign targeting elite academic institutions.
It is now the fifth Ivy League university facing federal funding suspensions, joining the University of Pennsylvania, Brown, and Princeton. The administration has leveraged financial pressure to force compliance with its educational and political agenda.
In a further development, the U.S. government on April 29 launched investigations into Harvard University and the Harvard Law Review, citing allegations of racial discrimination embedded in the operations of the law journal. Federal officials confirmed the probes, stating they had received reports of systemic race-based bias.
Harvard has also drawn attention as a focal point for campus protests. The university saw a wave of pro-Palestinian demonstrations in the wake of last year’s Gaza conflict, which ignited a broader political backlash.
Republican lawmakers have since turned up scrutiny on university leadership, with Ivy League presidents summoned to testify before Congress over alleged instances of antisemitism and institutional bias.
President Trump has previously accused Harvard of abusing its privileged tax-exempt status. “I think Harvard is a disgrace,” he told reporters, signaling his administration’s intent to hold the institution accountable through both financial and legal channels.
With the funding freeze in effect and its tax status under threat, Harvard now faces mounting pressure as it defends its autonomy and core principles amid one of the most significant political clashes between a U.S. president and a university in recent memory.
