Trump Threatens to Revoke Harvard's Tax-Exempt Status: Tension Between Executive Power and Academic Independence
By: [ Mas Gondes ]
Date: May 4, 2025
Washington, DC — Tensions between President Donald Trump and academia reached a new high Friday, after Trump announced his intention to revoke Harvard University’s tax-exempt status on his Truth Social platform. The statement prompted a wave of criticism from academics, legal experts and civil liberties advocates who called the move a potential abuse of executive power.
“We are taking away Harvard’s Tax-Exempt Status. That’s what they deserve!” Trump wrote in a post that has been shared thousands of times.
The post comes just days after the federal government froze more than $2.2 billion in federal funds previously allocated to Harvard, accusing the university of failing to meet demands for administrative reform, admissions policies and financial accountability.
Government Reasons: Ideology and Accountability
In an additional statement from the White House, the Trump administration accused Harvard of being an institution that is “no longer politically neutral” and said its “support for extreme ideologies and discriminatory policies based on identity” should not be funded by taxpayer dollars.
“For-profit educational institutions should operate in the public interest, not as tools of ideological propaganda,” said White House Press Secretary Sarah Lindell.
Limits of Presidential Authority and the Role of the IRS
But legal experts quickly questioned the legality of the move. While the IRS — not the president — has the legal authority to revoke the 501(c)(3) status of nonprofits like Harvard, concerns have been raised that the president’s public statements could exert political pressure on independent institutions.
“The president does not have the legal authority to instruct the IRS to revoke the tax-exempt status of a particular organization,” said Georgetown University Tax Law Professor Linda Morrison. “To do so would run the risk of violating the principle of non-interference in tax matters.”
By law, revocation of tax-exempt status requires a thorough audit and proof that the organization has seriously violated the requirements of being a nonprofit. Among those requirements are that the organization must not engage substantially in political or lobbying activities, and all profits must be used for recognized social, educational, or religious purposes.
Harvard's Response: Baseless Accusations and a Threat to Higher Education
Harvard interim president Alan Garber responded to the threats in a press conference Saturday morning, calling the administration’s move a “political attack on an independent academic institution.”
“Revoking tax-exempt status would harm not only Harvard, but the entire higher education sector in the United States,” Garber said. “This status allows us to support innovative research, provide scholarships to underprivileged students, and provide impactful public services.”
Garber also hinted that Harvard is considering legal action to challenge the administration’s actions, calling them a “punishment of critical thinking and academic independence.”
A Dangerous Precedent and the Future of Education
Political analysts warn that the use of executive power to attack academic institutions on the basis of political or ideological views sets a dangerous precedent.
“If the government can revoke tax status based on who they like or don’t like, then there’s no guarantee of independence for nonprofits, media, or religious organizations,” said Sheryl Hanks, a public policy fellow at the Brookings Institution.
The situation has raised concerns among other universities, who are now questioning the security of their tax-exempt status amid an increasingly polarized political landscape.
Cover
At the time of this writing, the IRS has not issued an official statement regarding Harvard’s tax status. However, the issue is likely to become a significant legal and political battleground in the coming months — not just for Harvard, but for the future of the relationship between the state and higher education institutions in the United States.
