The Trump administration is now taking direct aim at Harvard University’s tax-exempt status, pushing the IRS to revoke the elite institution’s favored classification amid an escalating standoff over ideological bias, foreign student misconduct, and federal defiance.
According to sources familiar with the decision, the administration has formally asked the IRS to review—and ultimately revoke—Harvard’s nonprofit status on the grounds that the university has strayed far from serving the public good. The move comes after Harvard repeatedly refused to comply with federal directives aimed at rooting out extremism, curbing taxpayer-funded DEI programs, and restoring academic accountability.
President Trump, who has publicly criticized Harvard as a “woke fortress” pushing radical ideology, is now turning up the pressure on what many conservatives view as an unaccountable and politically weaponized institution.
“Harvard has become a hub of anti-American indoctrination,” Trump said in a recent statement. “If they want to behave like a political organization, they can pay taxes like one too.”
The administration has already frozen more than $2.2 billion in federal grants and $60 million in contracts with the university. Homeland Security officials have also warned that Harvard’s ability to enroll international students could be suspended unless the school turns over documents related to foreign nationals involved in violent or unlawful protests—documents the university has so far refused to provide.
In addition to these actions, Harvard was ordered to submit to an internal review to ensure ideological balance in hiring and academic content. The school responded by doubling down on its stance, with President Alan Garber accusing the administration of infringing on academic freedom. Garber claimed the university would not comply with what he called “politically motivated demands,” a move that has only intensified the administration’s scrutiny.
Stripping Harvard of its tax-exempt status would be a historic and financially devastating blow. The university’s multibillion-dollar endowment, long shielded from federal taxes, could face massive levies if its nonprofit protections are removed. Donor incentives would be slashed, and alumni contributions could drop sharply, potentially disrupting the school’s operating model.
Conservative lawmakers have praised the administration’s bold move, calling it a long-overdue correction. “For too long, Harvard has enjoyed special privileges while waging war on the very country that funds it,” one official said. “This is about restoring fairness and ending the abuse of taxpayer generosity.”
Critics, including higher education lobbyists and left-wing media outlets, argue that the move is politically charged. But supporters see it as a necessary step to rein in institutions that have abandoned neutrality and become partisan actors.
The Trump administration’s message is crystal clear: if Harvard wants to operate like a political machine, it can no longer hide behind the tax code as a charitable organization. This is about enforcing accountability—and ending the free ride for radical academia.