Harvard University has pushed back against President Donald Trump’s threat to revoke its tax-exempt status, stating that such an action would be unlawful.
Trump reiterated the warning on Friday from Palm Beach, Florida, writing on Truth Social that Harvard deserves to lose this privilege.
In response, a Harvard spokesperson told ABC News that the president has no “legal basis” to strip the institution’s tax-exempt status, warning of the consequences on its educational mission.
The official added that the revocation would lead to diminished financial aid for students, the abandonment of critical medical research programmes, and lost opportunities for innovation.
According to the Harvard spokesperson, “The unlawful use of this instrument more broadly would have grave consequences for the future of higher education in America.”
Harvard stated that the United States government has long exempted universities from taxes in order to support their educational mission.
The tax exemption, Harvard noted, ensures that more money can go towards scholarships for students, lifesaving and life-enhancing medical research, and technological advancements that drive economic growth.
The Trump administration accused Harvard of failing to comply with its directive on antisemitism actions and the use of Diversity, Equity, and Inclusion policies on campus.
The government has imposed sanctions, including freezing more than $2.2 billion in federal grants, as well as $60 million in multi-year contract value.
In addition to the funding pause and the tax-exempt threat, Harvard may be blocked from further enrolling international students. The institution has filed a lawsuit challenging the administration.
