Trump Takes Aim at Harvard’s Tax Status—’Payback Time’ for Elite Institution

In a move that smacks of political theater—and maybe a dash of revenge—former President Trump vows to strip Harvard of its tax-exempt status. Because nothing says ’draining the swamp’ like going after an Ivy League endowment that probably earns more in a day than your crypto portfolio did at its ATH.

Higher education’s golden child now faces the ultimate ’audit’—Trump-style. Will this trigger a sell-off in academic prestige tokens? Unlikely. But it sure makes for great headlines while the real financial sharks keep swimming.

Trump goes after Harvard with IRS and Homeland Security

Trump said on April 15 that Harvard’s tax-exempt status depended on acting in the public interest. In a Truth Social post, he wrote, “Remember, Tax Exempt Status is totally contingent on acting in the PUBLIC INTEREST!” Two weeks later, he declared that the exemption was getting revoked.

The Treasury Department has already asked the Internal Revenue Service to investigate Harvard’s nonprofit status. The action could hit other universities too. Most public and private colleges depend on that same exemption to run their operations tax-free.

Harvard responded publicly on Friday through a spokesperson, who told NBC News, “There is no legal basis to rescind Harvard’s tax-exempt status.” The spokesperson also warned, “Such an unprecedented action would endanger our ability to carry out our educational mission. The unlawful use of this instrument more broadly would have grave consequences for the future of higher education in America.”

The administration’s crackdown also includes targeting international students. The Department of Homeland Security and immigration authorities have already revoked visas from thousands of students. In some situations, they even detained students individually. Now, Harvard’s entire ability to sponsor student visas could be stripped too.

Trump’s Homeland Security Secretary confirmed that the agency is weighing that option. If enforced, the school could lose one of its most powerful recruitment tools for global talent.

Meanwhile, on Capitol Hill, Democratic senators are trying to push back. On Friday, Chuck Schumer, Ron Wyden, Ed Markey, and Elizabeth Warren sent a letter to the acting chief of the Treasury Inspector General for Tax Administration. The letter demanded an investigation into whether the White House pressured the IRS to punish Harvard politically.

“It is both illegal and unconstitutional for the IRS to take direction from the President to target schools, hospitals, churches, or any other tax-exempt entities as retribution for using their free speech rights,” they wrote.

They also warned about what happens next. If the IRS bends to Trump’s demands now, the door opens to target smaller, less protected groups.

“While auditing Harvard for refusing to capitulate to the President’s demands is clearly troubling, we are even more concerned about the implications for organizations that are too small to resist pressure from the White House or do not have the resources for legal action,” the senators added.

Their warning included other nonprofits: “Church groups, hospitals, health clinics, or food banks could be next.”

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