Trump threatens to strip Harvard of tax-exempt status

US President Donald Trump has threatened to strip Harvard of its tax-exempt status after the elite university refused to accept far-reaching policy changes ordered by the White House.

Mr Trump had already moved to freeze €1.94 billion of federal funds yesterday in retaliation for the top university's defiance of the administration's push to bring campuses to heel.

Mr Trump said Harvard "should lose its tax exempt status and be taxed as a political entity" if it does not submit to his demands for the college to change the way it runs itself, including selection of students and authority for professors.

Tax-exempt status is "totally contingent on acting in the public intrest," he added in the post on his Truth Social network.

In a letter to students and faculty, Harvard president Alan Garber had vowed to defy the government, insisting that the school would not "negotiate over its independence or its constitutional rights".

President Trump's Joint Task Force to Combat Anti-Semitism responded with a statement announcing the €1.94 billion hold in multi-year grants, plus a freeze on €53 million in government contracts.

"Harvard's statement today reinforces the troubling entitlement mindset that is endemic in our nation's most prestigious universities and colleges - that federal investment does not come with the responsibility to uphold civil rights laws," it said.

"The disruption of learning that has plagued campuses in recent years is unacceptable. The harassment of Jewish students is intolerable. It is time for elite universities to take the problem seriously and commit to meaningful change if they wish to continue receiving taxpayer support."

Campuses across the country were rocked last year by student protests against Israel's war in Gaza, with some resulting in violent clashes involving police and pro-Israel counter-protesters.

Mr Trump and other Republicans have accused the activists of supporting Hamas, a US-designated terrorist group whose deadly attack on 7 October 2023 against Israel sparked the conflict.

The US Department of Education announced in March that it had opened an investigation into 60 colleges and universities for alleged "anti-Semitic harassment and discrimination".

Mr Garber's letter came after the administration placed €7.95bn in federal funding to Harvard and its affiliates under review, making its first demands.

Last Friday, the government sent Harvard a much more detailed list demanding an "audit" of the views of students and faculty, which the university made public.

'Raging anti-Semitism'

Harvard, which is located in the US state of Massachusetts, generated an operating surplus of nearly €40m on a revenue base of €5.75bn in the last financial year.

Mr Garber said the university was "open to new information and different perspectives" but would not agree to demands that "go beyond the lawful authority of this or any administration".

"No government - regardless of which party is in power - should dictate what private universities can teach, whom they can admit and hire, and which areas of study and inquiry they can pursue," he said.

Top Republican congresswoman Elise Stefanik, who was lauded by Mr Trump last year for aggressive questioning of universities over anti-Semitism, called for Harvard to be defunded, calling it "the epitome of the moral and academic rot in higher education".

The New York firebrand, seen as one of the most vocal supporters in Congress of Israel and US Jewish causes, accused the university of tolerating "raging anti-Semitism".

Harvard's response to the White House's demands was in sharp contrast to the approach taken by Columbia University, the epicentre of last year's pro-Palestinian protests.

The Trump administration cut €353m in grants to the private New York school, accusing it of failing to protect Jewish students from harassment as protesters rallied against Israel's Gaza offensive.

The school responded by agreeing to reform student disciplinary procedures and hiring 36 officers to expand its security team.

As well as the funding cut, immigration officers have targeted two organizers of the pro-Palestinian protests at Columbia: Mahmoud Khalil, whom the government is seeking to deport, and Mohsen Mahdawi, who was arrested yesterday as he attended an interview to become a US citizen.