Trump Threatens Harvard's Tax-Free Status After Rebuke

The university has long been a target of Republicans who have accused it of liberal bias

- Bloomberg

President Donald Trump escalated his administration's fight with Harvard University by threatening its tax-exempt status after the school defied the government's demands to change its policies in exchange for billions of dollars of federal funding.

"Perhaps Harvard should lose its Tax Exempt Status and be Taxed as a Political Entity if it keeps pushing political, ideological, and terrorist inspired/supporting "Sickness?" Trump posted on Truth Social. "Remember, Tax Exempt Status is totally contingent on acting in the PUBLIC INTEREST!"

Stripping Harvard's tax-exempt status completely would deal a painful financial blow to the university. Harvard's tax-exempt status affords the school a variety of benefits, such as not having to pay traditional property taxes on educational buildings. It can sell bonds that pay interest that's exempt from federal taxes, which lures investors and helps lower borrowing costs.

In addition, alumni who donate money to the school can deduct the contributions, providing an incentive for donations. That's especially crucial for Harvard, which received $528 million of current-use gifts in fiscal 2024.

A Bloomberg News analysis estimated that Harvard's tax benefits totaled at least $465 million in 2023.