Harvard president slams Trump’s tax threat as ‘highly illegal’ amid growing legal battle

“We are going to be taking away Harvard’s Tax Exempt Status. It’s what they deserve!”

While an administration official clarified that the post was not a formal directive to the IRS, it has added fuel to an already escalating standoff between the White House and one of America’s most powerful universities.

Legal showdown brewing

Harvard filed a lawsuit against the Trump administration last month, accusing it of violating the university’s constitutional rights by freezing billions of dollars in federal research grants and contracts. The university says the move threatens its academic independence and is part of a broader campaign to exert political pressure on elite universities.

The administration’s actions come amid a broader crackdown on schools it believes have failed to adequately respond to antisemitism. A newly established government task force is investigating institutions—including Harvard—over campus protests related to the Israel-Palestine conflict. The White House is also pushing to eliminate diversity, equity, and inclusion (DEI) programs across higher education.

Despite the threats, Harvard has not received any formal notice from the IRS of an audit or review of its tax-exempt status. Such action would be the first step toward a revocation and must be based on violations of federal tax law.

Under the law, 501(c)(3) organizations like Harvard are exempt from income taxes and allow donors to receive tax deductions. That status can only be revoked if the institution is found to have violated core public policies or engaged in disqualifying behaviour. The Supreme Court set a precedent for this in 1983 when it upheld the IRS’s decision to strip Bob Jones University of its tax-exempt status due to racially discriminatory policies.

Some experts have speculated that the Trump administration could attempt to argue that Harvard’s admissions policies or its handling of antisemitism fall afoul of such standards—but any such claim would face intense legal scrutiny.

Political interference raises alarms

Trump’s direct comments on Harvard’s tax status raise serious legal and ethical concerns. US law prohibits senior federal officials, including the president, from influencing IRS investigations or audits. Violations of this statute can lead to criminal penalties, although prosecuting a sitting or former president on those grounds could face significant hurdles in light of existing court rulings on executive power and immunity.

Senate Minority Leader Chuck Schumer (D., N.Y.) has already asked the IRS inspector general to investigate whether Trump has unlawfully attempted to pressure the IRS or direct audits of politically disfavoured nonprofits. “No American institution is above the law,” Schumer said Friday. “That includes both the IRS and the president.”

A clash of missions and values

For Harvard, the threat from Washington comes at a moment of broader reckoning. The university has faced scrutiny from across the political spectrum over its admissions policies, its response to antisemitic incidents, and its perceived elitism. But Garber insists that the stakes of this conflict go beyond one school.

“If the government goes through with a plan to revoke our tax exempt status,” he said, “it would be an existential threat—not just to Harvard, but to the independence and vitality of the American education system.”

With the IRS so far silent and the courts likely to play a pivotal role, the standoff is shaping up to be a legal and political showdown that could redefine the boundaries of presidential power and academic freedom.