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American Focus > Blog > Politics > Trump Orders IRS to Draw Up Plans to Rescind Harvard’s Tax-Exempt Status |
Politics

Trump Orders IRS to Draw Up Plans to Rescind Harvard’s Tax-Exempt Status |

Last updated: April 16, 2025 4:20 pm
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Trump Orders IRS to Draw Up Plans to Rescind Harvard’s Tax-Exempt Status |
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Credit: Wikimedia Commons

The Trump Administration’s Confrontation with Harvard University

The Trump administration appears to be intensifying its confrontation with Harvard University, as revealed by a report from CNN. In a surprising move, the administration has directed the Internal Revenue Service (IRS) to draft plans aimed at revoking Harvard’s tax-exempt status.

If executed, this action could have severe financial repercussions for Harvard, potentially costing the institution billions annually and jeopardizing its esteemed position in global academia.

Gary Shapley, the newly appointed acting IRS commissioner by Trump, possesses the legal authority to revoke the tax-exempt status of organizations deemed to violate federal regulations governing nonprofits. Such a revocation typically follows investigations revealing significant breaches of compliance.

Organizations that are tax-exempt must tread carefully, as they risk losing this status if found engaging in activities that are considered politically inappropriate. A definitive ruling on Harvard’s status is anticipated shortly.

In a related escalation, Trump has ordered a freeze on approximately $2.3 billion in federal funding earmarked for the university, citing its failure to align with directives aimed at eliminating diversity, equity, and inclusion (DEI) initiatives, along with its alleged inaction against antisemitism on campus.

In response, Harvard President Alan Garber has firmly rebuffed these demands, upholding the university’s commitment to academic freedom and its right to operate independently of governmental interference.

Garber stated, “We have informed the administration through our legal counsel that we will not accept their proposed agreement. The University will not surrender its independence or relinquish its constitutional rights.” He further articulated that the administration’s requests infringe upon Harvard’s First Amendment rights and exceed the federal government’s authority under Title VI, jeopardizing the institution’s core mission of knowledge pursuit, production, and dissemination.

“No government—regardless of political affiliation—should dictate the educational curriculum, admissions processes, or academic inquiries of private universities,” he concluded.

Trump Administration Freezes $2.3 Billion in Harvard Funding Amid DEI and Antisemitism Dispute

Furthermore, President Trump’s Joint Task Force to Combat Anti-Semitism criticized Harvard’s response, labeling it as emblematic of a troubling mindset pervasive in elite universities. They stated, “Federal investment does not come without the obligation to uphold civil rights laws.”

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They continued, “The disruption of learning that has afflicted campuses in recent years is intolerable, as is the harassment faced by Jewish students. Elite institutions must take these issues seriously and commit to substantial changes if they wish to continue receiving taxpayer support.”

TAGGED:drawHarvardsIRSordersPlansRescindStatusTaxExemptTrump
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