Harvard University Faces IRS Action Over Tax-Exempt Status
The move is part of Trump's broader campaign against the intellectual elite, which he claims is too left-wing. Other institutions, such as Columbia University, have already bowed to similar demands from the Trump administration. Harvard's president has stated that the government should not dictate what private universities can teach, whom they can admit and hire, and which areas of study they can pursue.
The IRS is planning to rescind Harvard University's tax-exempt status, a move that would have significant financial implications for the university, in a rare and extraordinary step of retaliation against the university for defying the Trump administration's demands to change its hiring and other practices.
The Trump administration has been pushing for universities to comply with its demands, citing concerns about antisemitism, and has threatened to cut funding to those that do not comply. Harvard has resisted these demands, citing its constitutional right to determine its own teaching practices. The university's president, Alan Garber, has rejected the pressure, stating that the university will not compromise its values and independence.
The row has sparked widespread criticism, with Golden State Warriors basketball coach Steve Kerr speaking out in support of Harvard, saying that academic freedom is crucial for all institutions. Harvard University, one of the world's leading research institutions, is facing a federal funding freeze due to alleged failures to address antisemitism on campus. However, the university claims that curtailing research funding will not address the issue and will instead jeopardize lifesaving medical research and national security.
Harvard's research is supported by the federal government, which accounts for 68% of its sponsored revenue. The university has reported 402 innovations and 155 patents in the 2024 fiscal year, and has a total of 162 Nobel laureates. The research funded by the federal government includes groundbreaking work in cancer, heart disease, neurodegenerative diseases, infectious diseases, and organ transplantation.
The decision by the IRS to rescind Harvard University's tax-exempt status is expected soon, and if implemented, it would have significant financial implications for the university. The university has implemented various measures to combat antisemitism, including strengthened rules, training, and education, but claims that curtailing research funding will not help.