In a seismic political move, President Donald J. Trump announced today that his administration will strip Harvard University of its tax-exempt status, accusing the elite institution of defiance, ideological extremism, and harboring radicalism.
The announcement, made on Truth Social, comes after Harvard refused to comply with five specific mandates issued by the Trump administration and instead filed a lawsuit against the federal government.
“We are going to be taking away Harvard’s Tax Exempt Status,” Trump posted. “It’s what they deserve!”
The Final Straw: Harvard’s Defiance
This battle has been brewing since early April, when the Department of Health and Human Services, backed by other federal agencies, delivered a letter to Harvard demanding reforms in exchange for the continuation of over $2 billion in federal research grants.
The five demands were:
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Shut down all Diversity, Equity, and Inclusion (DEI) programs
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Conduct a university-wide audit to ensure ideological diversity
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Implement hiring and admissions practices that ensure conservative representation
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Defund and dismantle radical pro-Hamas student groups
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Fully disclose all foreign funding sources
Harvard flatly refused, citing academic freedom and constitutional protections. The Trump administration responded by freezing $2.2 billion in federal research funding.
Harvard then sued the Trump administration, claiming the government overstepped its authority under Title VI and violated the school’s First Amendment rights.
President Larry Bacow’s successor, Harvard President Alan Garber, blasted the administration’s actions as “unprecedented interference,” adding:
“No government—regardless of which party is in power—should dictate what private universities can teach, whom they can admit and hire, and which areas of study and inquiry they can pursue.”
But Trump wasn’t moved.
The End of Harvard’s Free Ride?
Harvard’s tax-exempt status has been a key factor in helping it build the largest university endowment in the world, currently valued at over $53 billion. That endowment earned $2.4 billion in the 2024 fiscal year alone—without paying taxes.
By removing Harvard’s special status, the administration will likely expose the university to billions in potential tax liabilities, including on investment income, real estate, and tuition revenue.
The move is seen by many conservatives as a long-overdue strike against elite liberal institutions that have become breeding grounds for woke ideology, anti-American sentiment, and radical activism.
What Comes Next?
Legal analysts expect Harvard to challenge the tax-stripping move in court, but under federal tax law, the IRS and Department of Education have broad latitude to regulate tax exemptions for nonprofit educational institutions—especially if they are found to be engaging in discrimination, political advocacy, or violations of federal law.
And Trump’s base is cheering.
The decision is being hailed as a political masterstroke, simultaneously dismantling the financial shield of a radical institution and sending a clear message to other universities: comply with the law—or pay the price.
Whether other Ivy League schools will follow Harvard into a constitutional confrontation with the Trump administration remains to be seen—but the war on woke academia has undeniably begun.