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April 23rd , 2025

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TRUMP THREATENS HARVARD’S TAX-EXEMPT STATUS AFTER FREEZING $2BN FUNDING

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President Donald Trump has escalated his conflict with Harvard University, threatening to strip the institution of its valuable tax-exempt status following his administration’s announcement of a $2bn funding freeze. This move comes after Harvard refused to comply with the White House's demands to alter its hiring, admissions, and teaching practices, which Trump’s administration claims are essential in fighting antisemitism on campus.

Trump’s administration had previously warned universities, including Harvard, that federal research funds could be withheld unless they enacted specific changes. The White House has criticized the university for not adequately addressing alleged antisemitism and for not adopting measures the administration deems crucial for combating the issue. In an act of defiance, Harvard, the oldest university in the United States, rejected these demands, emphasizing its commitment to academic freedom and its constitutional rights under the First Amendment. Harvard President Alan Garber made it clear that the university would not relinquish its autonomy or allow the government to dictate its academic policies.

Trump, undeterred by the university’s defiance, escalated his rhetoric by threatening to revoke Harvard’s tax-exempt status. On his Truth Social platform, the president suggested that Harvard should be taxed as a political entity if it continued to promote what he called “political, ideological, and terrorist inspired/supporting ‘sickness.’” Losing its tax-exempt status could cost the prestigious institution millions annually, a blow that could also extend to its considerable endowment, valued at $53bn.

White House Press Secretary Karoline Leavitt further pressed for an apology from Harvard, asserting that the university had failed to take appropriate action in response to allegations of antisemitism. According to Leavitt, Harvard’s refusal to comply with the government’s demands demonstrated a lack of respect for American values. The administration’s proposed changes included measures such as ensuring viewpoint diversity in every academic department and reporting students deemed “hostile” to American values.

The confrontation is part of a broader effort by the Trump administration to impose stricter controls over the nation's top universities, demanding significant changes in how they operate. The freeze on federal funds, primarily earmarked for research, is intended to send a strong message to institutions that resist the administration’s agenda.

As the situation unfolds, it is becoming increasingly clear that the tension between Trump’s government and elite universities like Harvard could have significant consequences for the future of academic freedom in the U.S. Universities that receive federal funds, like Harvard, are under increasing pressure to comply with government demands or face substantial financial repercussions.






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