President Donald Trump has escalated his ongoing battle with Harvard University by vowing to revoke its tax-exempt status, a move that legal experts warn could violate federal law and set a dangerous precedent.
In a post early Friday on his social media platform Truth Social, Trump wrote: “We are going to be taking away Harvard’s Tax Exempt Status. It’s what they deserve!” The declaration comes just over a month after Harvard filed a lawsuit against the federal government in response to the Trump Administration’s decision to freeze $2.2 billion in federal funding.
While the practical impact of Trump’s statement remains unclear, legal scholars immediately raised alarms. Lily Batchelder, a tax policy professor at NYU School of Law, described the announcement as “a lawless action by the President,” citing U.S. laws that prohibit the White House from directing IRS enforcement actions against specific taxpayers.
“If the President can announce that he is revoking the tax-exempt status of a charity, we have crossed a rubicon,” Batchelder said. “There is no legal basis to rescind Harvard’s tax-exempt status without due process and evidence of legal violations.”
Harvard University, one of the nation’s most prominent nonprofit institutions, qualifies for tax-exempt status under section 501(c)(3) of the Internal Revenue Code. Such status requires that it operate solely for educational purposes and comply with strict limitations on lobbying and financial transparency. The university reported that nearly 40% of its total revenue for the 2024 fiscal year came from federal funds.
In a statement to TIME, a Harvard spokesperson warned of the far-reaching consequences of Trump’s threat. “Such an unprecedented action would endanger our ability to carry out our educational mission. It would result in diminished financial aid for students, abandonment of critical medical research programs, and lost opportunities for innovation.”
In 2024, Harvard awarded more than $749 million in financial aid, with 55% of undergraduates receiving need-based scholarships.
The clash between Harvard and the Trump Administration has intensified in recent weeks. The administration has demanded that the university adopt policies targeting diversity, equity, and inclusion (DEI) efforts, and has also criticized its handling of pro-Palestinian protests on campus. Homeland Security Secretary Kristi Noem recently canceled $2.7 million in grants to Harvard and warned that the university could lose its certification to host international students if it fails to comply with federal demands for records tied to foreign visa holders involved in the demonstrations.
As the legal and political battle continues, experts fear that the Trump Administration’s actions could redefine the relationship between higher education institutions and the federal government.
