Tensions between Donald Trump and Harvard University have hit a new peak. On Friday, Trump announced plans to revoke the Ivy League school’s tax-exempt status, escalating a bitter fight over federal funding and how the school has handled antisemitism allegations.
This latest move follows Trump’s earlier freeze of more than $2 billion in federal grants to Harvard. The administration accused the university of failing to make necessary changes to address antisemitism on campus, including cutting ties with certain diversity, equity, and inclusion (DEI) initiatives.
In response, Harvard filed a lawsuit claiming the funding freeze violates its First Amendment rights and is unconstitutional. The school argues that losing its tax-exempt status would have serious consequences, including reduced financial aid, halted research, and stifled innovation. Officials say that much of the frozen funding supports medical research and unrelated academic work.
The Trump administration counters that nonprofits like Harvard, which receive tax exemptions, should not engage in political or ideological actions that could conflict with public interests. They believe the university’s resistance to policy reforms — particularly regarding antisemitism and DEI — crosses that line.
Legal experts have pointed out that revoking a school’s tax-exempt status over political disagreements could raise serious constitutional issues. Senate Democrats, led by Chuck Schumer, have already called for a federal investigation into whether Trump is improperly pressuring the IRS for political reasons.
Harvard maintains that it has taken steps to address antisemitism, and insists that punishing the university financially won’t help fight hate on campus. The legal battle now moves to federal court, where Harvard hopes to block Trump’s efforts and restore its funding.
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