Trump threatens to revoke Harvard's tax-exempt status after school rejects policy demands
President Donald Trump threatened to revoke Harvard University's tax-exempt status a day after the school announced it would not comply with his administration's demands for policy changes.
"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?'" he wrote on Truth Social Tuesday night.
He added, "Remember, Tax Exempt Status is totally contingent on acting in the PUBLIC INTEREST!"
On Wednesday morning, he further condemned the Cambridge-based university in another post, writing that Harvard is "a JOKE, teaches Hate and Stupidity, and should no longer receive Federal Funds."
Harvard did not immediately respond to request for comment.
What to know about Trump's crackdown on Harvard
On Friday, the Trump administration sent Harvard a letter requesting a slew of policy changes in exchange for continued federal funding.
The list included requirements for the university to share its admission and hiring data with the federal government and for it to reverse its diversity, equity and inclusion programs, among other demands.
Harvard President Alan Garber said Monday that the institution will not comply with the requests, which he said "goes beyond the power of the federal government."
In turn, the Department of Education announced late Monday it is freezing $2.2 billion in funding to the university.
What is tax-exempt status? Why it matters for Harvard
Under the IRS' Internal Revenue Code, certain organizations — such as those that are religious, charitable or educational — are exempt from paying federal income tax. This applies to most universities, including Harvard.
According to the Association of American Universities, universities are tax-exempt because they are considered critical for society, so not requiring them to pay federal income tax allows them to maximize their revenue.
The exemption allows universities to "use more resources that would otherwise be available to fund," such as student financial aid, academic programs and medical research, according to AAU.
Universities that are exempt from federal income taxes do have to pay other types of taxes, such as payroll tax for their employees, according to AAU.
Melina Khan is a trending reporter for the Paste BN Network - New England, which serves more than a dozen affiliated publications across New England. She can be reached at MKhan@gannett.com.