Trump Targets Harvard’s Tax-Exempt Status After Freezing $2.2 Billion in Federal Funding

On April 14, 2025, President Donald Trump escalated his campaign against elite U.S. universities by threatening to strip Harvard University of its tax-exempt status, hours after his administration froze over $2.2 billion in federal grants and $60 million in contracts to the institution. The move follows Harvard’s rejection of White House demands to overhaul its hiring, admissions, and teaching practices to combat alleged antisemitism on campus, intensifying a high-stakes clash over academic freedom and federal oversight.

Harvard Rejects White House Demands

The Trump administration issued a letter to Harvard on Friday, obtained by The New York Times, accusing the university of failing to meet “intellectual and civil rights conditions” justifying federal investment. The letter outlined 10 sweeping changes, including reporting students deemed “hostile” to American values, ensuring “viewpoint diversity” in academic departments, auditing programs for antisemitic content, and checking faculty for plagiarism. These demands stem from Trump’s accusations that leading universities, including Harvard, failed to protect Jewish students during 2024 campus protests against the Gaza war and U.S. support for Israel.

Harvard President Alan Garber firmly rejected the demands, citing threats to the university’s independence and First Amendment rights. “While some demands aim to combat antisemitism, most represent direct governmental regulation of Harvard’s intellectual conditions,” Garber stated, emphasizing the institution’s commitment to free speech.

Trump’s Threat to Tax-Exempt Status

In a Tuesday morning post on Truth Social, Trump suggested taxing Harvard as a “political entity” if it continues to support what he called “political, ideological, and terrorist-inspired sickness.” Losing tax-exempt status, a privilege granted to universities and nonprofits for operating in the public interest, could cost Harvard millions annually. “Tax-exempt status is contingent on acting in the public interest!” Trump wrote, signaling a broader push to reshape higher education.

Federal Funding Freeze and Broader Context

The Department of Education swiftly froze $2.2 billion in grants and $60 million in contracts to Harvard, criticizing the university’s “entitlement mindset.” This follows a March 2025 review of $256 million in Harvard’s federal contracts and $8.7 billion in multi-year grant commitments. Harvard, with its $53 billion endowment, remains the wealthiest U.S. university, but the funding freeze marks a significant escalation in Trump’s efforts to influence elite institutions.

The administration’s actions align with declining public confidence in higher education, as shown in a 2024 Gallup poll, particularly among Republicans who view universities as pushing political agendas. Harvard’s resistance has drawn support from faculty, with history professor David Armitage calling the White House’s actions “groundless and vengeful,” aimed at silencing free speech.

Columbia University and Campus Protest Fallout

Harvard’s defiance contrasts with Columbia University, which recently complied with similar White House demands after losing $400 million in federal funding. Columbia’s concessions, including a mask ban during protests, sparked criticism from students and faculty. Meanwhile, the Trump administration has targeted international students involved in campus protests, with Immigration and Customs Enforcement (ICE) detaining Columbia student Mohsen Mahdawi on April 14, 2025, during a citizenship interview, alongside others like Mahmoud Khalil and Rumeysa Ozturk.

Implications for Higher Education

The clash between Trump and Harvard signals a broader battle over the autonomy of U.S. universities. With lawsuits from Harvard professors alleging violations of free speech and academic freedom, and ongoing federal reviews of other elite institutions, the outcome could reshape the landscape of higher education funding and governance.