Trump to take away Harvard's tax exempt status
ET Online May 03, 2025 06:20 AM
Synopsis

Donald Trump announced his administration would revoke Harvard University's tax-exempt status. This followed tensions over diversity policies and campus activism. The administration had previously frozen federal grants to Harvard. Harvard argued this move would harm its educational mission. Legal experts expressed concern about academic freedom. This decision could set a precedent for other institutions. The university may face challenges.

On May 2, US President Donald Trump announced that his administration would revoke Harvard University's tax-exempt status.

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In a post on his social media platform, Trump stated, "We are going to be taking away Harvard's Tax Exempt Status. It's what they deserve!"

This declaration follows ongoing tensions between the Trump administration and Harvard over issues related to diversity, equity, and inclusion (DEI) policies, as well as campus activism.

Previously, the administration had frozen over $2.2 billion in federal grants and contracts to the university after Harvard rejected demands to alter its governance, admissions, and hiring practices.

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Harvard had responded by asserting that the removal of its tax-exempt status would jeopardise its educational mission, potentially reducing financial aid for students and hindering critical research initiatives.

Although, legal experts and academic leaders have expressed apprehension about the implications of revoking a university's tax-exempt status, citing potential challenges to academic freedom and the precedent it may set for other institutions.

Trump probes Harvard Law Review over discrimination

Separately, the Trump administration has launched a federal investigation into the Harvard Law Review over alleged discriminatory practices, further escalating its battle with the university.

The civil rights offices of the Departments of Education and Health and Human Services announced they are probing claims that the student-run journal uses race-based criteria rather than merit-based standards in selecting members and articles.

“Harvard Law Review’s article selection process appears to pick winners and losers on the basis of race, employing a spoils system in which the race of the legal scholar is as — if not more — important than the merit of the submission,” said Craig Trainor, the Education Department’s acting assistant secretary for civil rights.

“Title VI’s demands are clear: recipients of federal financial assistance may not discriminate on the basis of race, color, or national origin,” Trainor added. “No institution — no matter its pedigree, prestige, or wealth — is above the law.”
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