US President Donald Trump threatens to strip Harvard of tax-exempt status amid ongoing feud

US President Donald Trump has once again threatened to revoke Harvard University’s tax-exempt status, intensifying his clash with the prestigious institution amid ongoing legal and political disputes.

In a social media post on Friday, Trump wrote, “We are going to be taking away Harvard’s Tax Exempt Status. It’s what they deserve!” The statement marks his latest salvo in a growing battle that pits the former president against one of America’s most prominent universities.

However, a White House official clarified that Trump’s post does not constitute a formal directive to the Internal Revenue Service (IRS). According to The Wall Street Journal, the agency has not yet received any official instruction to pursue the matter.

The conflict escalated after Harvard filed a lawsuit against the federal government late last month, challenging the legality of the administration’s freeze on more than Rs 2 billion in federal funding. The university argues that the move violates its constitutional rights and threatens its academic autonomy.

The funding freeze came after Harvard refused to comply with Trump administration demands, including the dismantling of its diversity, equity, and inclusion (DEI) initiatives. In response, the university recently announced changes, such as renaming its “Office for Equity, Diversity, Inclusion, and Belonging” to “Community and Campus Life,” and ending the practice of funding or hosting affinity group celebrations during commencement ceremonies.

In addition, Harvard released two internal reports addressing bias on campus—one focused on antisemitism and anti-Israel sentiment, and another examining discrimination against Muslims, Arabs, and Palestinians.

While a White House official acknowledged these steps as “positive,” they suggested the administration expects further action to combat what it views as anti-Israel bias on campus.

White House spokesperson Harrison Fields stated that any potential IRS actions would be independent of the president’s social media comments. Fields also said that relevant audits or investigations were already underway prior to Trump’s latest remarks.

The IRS and the Treasury Inspector General for Tax Administration have not issued responses to inquiries regarding the matter. Under U.S. law, any IRS employee who receives an improper directive from the White House is required to report it.

Harvard, the oldest and wealthiest university in the U.S., dismissed the threat to its tax-exempt status as both unlawful and without precedent. “There is no legal basis to rescind Harvard’s tax-exempt status,” the university said in a statement, warning that such action would set a dangerous precedent for higher education nationwide.

Free-speech advocates and non-profit organisations echoed Harvard’s concerns, warning that politicising tax status could undermine academic freedom.

Since returning to the political spotlight, Trump has repeatedly criticised elite academic institutions, accusing them of fostering antisemitic, anti-American, and radical ideologies. His administration has launched multiple measures against universities, including suspending federal funding, targeting foreign student programs, and demanding audits of faculty viewpoints and governance.

The ongoing legal battle between Trump and Harvard underscores broader tensions over free speech, federal oversight, and the future of academic independence in America.