OAN Staff James Meyers and Brooke Mallory
4:31 PM – Friday, May 2, 2025
On Friday, President Donald Trump announced that his administration plans to revoke the tax-exempt status of Harvard University. This, he claims, is in response to what he sees as the school’s failure to tackle widespread anti-Semitism and anti-Israel feelings on campus and in its classes.
While it’s true that a U.S. president doesn’t have the direct power to revoke such status, the Internal Revenue Service (IRS) does have that authority. They would typically need solid evidence of non-compliance with Section 501(c)(3) of the Internal Revenue Code, which could include significant political activity or violations of public policy.
If such a procedure were initiated, Harvard would be informed and allowed to appeal the decision.
The IRS is currently led by Acting Commissioner Michael Faulkender, who was appointed just a couple of weeks ago on April 18, 2025, by Treasury Secretary Scott Bessent, someone closely aligned with Trump’s policies.
“We are going to be taking away Harvard’s Tax Exempt Status. It’s what they deserve!” Trump declared in a post on Truth Social.
This latest action comes on the heels of the Trump administration freezing $2.2 million in federal grants due to Harvard’s perceived inaction against anti-Israel protests and expressions of hatred toward Jewish individuals.
In defense, Harvard President Alan Garber asserted that the university has been actively combatting anti-Semitism. He pointed out measures like clarifying policies on discrimination, enhancing disciplinary protocols, and increasing kosher food options on campus.
However, Trump hinted at consequences if the school continued propagating what he termed a “political, ideological, and terrorist inspired/supporting ‘Sickness?’” to its students.
“Remember, Tax Exempt Status is totally contingent on acting in the PUBLIC INTEREST!” he emphasized.
Generally, universities enjoy tax-exempt status as they are deemed to operate for educational purposes. Yet, an institution could lose that status if it engages in prohibited political activities—something the IRS might argue if it were to consider revoking Harvard’s status under Trump’s hypothetical direction.
Although it’s expected that for the IRS to act, it would require “substantial evidence” suggesting political motives behind any action taken against the university, due to laws restricting presidential influence over IRS audits or investigations.
Harvard, in response, insisted that Trump’s remarks reflect an unlawful perspective.
“There is no legal basis to rescind Harvard’s tax-exempt status,” a spokesperson replied. “The unlawful use of this mechanism could have dire implications for higher education in the U.S.”
Harvard’s tax exemptions have significantly contributed to its status as the holder of the largest university endowment in the country, close to $53 billion, yielding nearly $2.4 billion in revenue for the 2024 fiscal year. This funding covers about 38% of its $6.4 billion operating budget, while its annual federal support totals around $686 million, representing nearly 16% of that budget.
Democratic Whip Katherine Clark of Massachusetts echoed this sentiment, calling Trump’s announcement “illegal.”
“Revoking Harvard’s tax-exempt status will have deep-reaching effects beyond just its faculty and students. Harvard is a leader in scientific research that brings hope to patients and fuels our innovation economy,” she stated. “The truth remains: there are no kings in this country.”
Stay informed! Receive breaking news blasts directly to your inbox for free. Subscribe here. https://www.oann.com/alerts
Advertisements below
