Harvard University is in a standoff with Donald Trump after rejecting a series of demands from the president’s administration, which critics view as an attack on the elite college for its reputation among conservatives as a bastion of liberal thought.
After cutting off its funding, Trump has reportedly given the Internal Revenue Service (IRS) a potentially illegal order to revoke the university’s tax-exempt status. Such a decision would mark an escalation in the Republican president’s weaponization of federal government agencies against the people and institutions that defy it.
Here’s more about the battle between Trump and Harvard and how the president might try to use the IRS:
How did the standoff begin?
The Trump administration’s antisemitism taskforce this month sent the university a letter saying it had “failed to live up to both the intellectual and civil rights conditions that justify federal investment”. It listed demands, including banning face masks, closing its diversity, equity and inclusion programs and cooperating with immigration authorities.
How did Harvard react?
Harvard’s president, Alan Garber, refused to yield, saying: “[T]he university will not surrender its independence or relinquish its constitutional rights.” It has retained attorneys William Burck and Robert Hur, both veterans of Republican administrations, who say Trump’s demands are “in contravention of the first amendment”. Harvard’s stand is in contrast to the situation at Columbia University, which acceded to similar demands from the Trump administration in exchange for the restoration of $400m in federal funding that was revoked.
How did Trump retaliate?
The Trump administration quickly froze $2.2bn in grants and $60m in multiyear contracts to Harvard. A member of the president’s antisemitism taskforce attacked the school’s stance, saying it “reinforces the troubling entitlement mindset that is endemic in our nation’s most prestigious universities and colleges – that federal investment does not come with the responsibility to uphold civil rights laws”. Trump then called for Harvard to lose its tax-exempt status, and the Washington Post reported that the administration had asked the IRS’s top attorney to revoke it.
What is tax-exempt status?
If the IRS grants an organization tax-exempt status, they can avoid paying federal income tax, but must follow certain rules. These include refraining from campaign activity or attempting to influence legislation, while no individuals or shareholders are allowed to receive their earnings. According to the IRS, the status is available to charitable, religious, scientific and literary organizations, as well as those involved in preventing cruelty to children or animals, organizing amateur sports competitions or conducting testing for public safety reasons.
Can Trump legally ask the IRS to revoke the university’s tax-exempt status?
Federal law prohibits the president from directing the IRS to conduct an investigation or audit, and no evidence has yet emerged that the university has done anything to lose its tax-exempt status. White House spokesperson Harrison Fields told US media “any forthcoming actions by the IRS are conducted independently of the President, and investigations into any institution’s violations of their tax status were initiated prior to” Trump’s public call for the status to be revoked.
Has something like this happened under Trump before?
In 2022, after Trump’s first term concluded, the New York Times reported that the former FBI director James Comey and his ex-deputy, Andrew McCabe, had been selected in 2019 for the IRS’s most invasive form of random tax audit. Trump had fired both Comey and McCabe during his term, and tax experts said both of them being selected for the audits was unusual. Trump, who had attacked Comey and McCabe by name even after their dismissals, denied any involvement.
