Key facts
- The Trump administration is renewing its efforts to revoke Harvard University's tax-exempt status.
- Harvard University refused demands related to governance, admissions, and diversity programs.
- The administration has already frozen over $2 billion in federal grants and contracts to Harvard.
- Harvard has sued the Trump administration, citing free speech and due process concerns.
- Federal tax law prohibits executive branch members from directly requesting IRS investigations or audits.
The Trump administration has renewed its campaign against higher education institutions by targeting Harvard University's tax-exempt status. President Donald Trump signaled this intention after Harvard refused to comply with demands concerning governance, leadership, hiring and admissions processes, student programs with records of antisemitism or bias, and diversity, equity, and inclusion (DEI) programs.
In response to Harvard's refusal, the Department of Education froze $2.2 billion in grants and $60 million in contracts, with plans to freeze an additional $1 billion in federal funding for health research. Harvard University has since sued the Trump administration, arguing that the actions infringe upon the university's free speech rights under the First Amendment and are arbitrary and capricious. The university contends that the federal government cannot impose unrelated conditions for accessing federal funding.
The Treasury Department has directed a senior official at the Internal Revenue Service (IRS) to initiate the process of revoking Harvard's tax-exempt status. However, federal tax law prohibits senior executive branch members from requesting IRS investigations or audits. The White House has stated that any IRS actions will be conducted independently of the president, though Democrats have called for an inspector general investigation into the administration's actions, raising concerns about potential infringements on free speech and due process rights.
This dispute is framed by the administration as an effort to combat antisemitism on college campuses, but it is also seen as a political move against elite institutions. The administration also seeks to block Harvard from enrolling international students. The outcome of Harvard's case could set a precedent for other nonprofit organizations regarding their tax-exempt status and eligibility for federal funding.