Trump Admin Threatens Harvard’s Tax Exempt Status And Enrollment Of Foreign Students

Topline

The IRS may revoke Harvard University’s tax-exempt status, multiple outlets reported Wednesday, while the Department of Homeland Security threatened to restrict its ability to enroll international students after the Ivy League school refused to agree to a list of White House demands school administrators said blurred the lines of academic freedom.

Key Facts

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How Will Harvard’s Foreign Student Enrollment Be Affected?

In a separate announcement on Wednesday, DHS Secretary Kristi Noem said she was terminating $2.7 million worth of grants from the the agency to Harvard. The DHS secretary also wrote to the university demanding “detailed records on Harvard’s foreign student visa holders’ illegal and violent activities by April 30, 2025,” failing which the institute could lose Student and Exchange Visitor Program (SEVP) certification. If Noem follows through with her threat, Harvard could lose its ability to enroll foreign students.

What Else Did Noem’s Letter To Harvard Say?

According to student newspaper Harvard Crimson, Noem’s letter accused the university of creating a “hostile learning environment” for its Jewish students. The letter demands Harvard’s administrators provide information regarding international students who made “threats to other students or university personnel,” or obstructed the university’s “learning environment.” The DHS secretary has also sought details on any disciplinary actions taken by the university against such international students. Noem’s letter added: “It is a privilege to have foreign students attend Harvard University, not a guarantee.”

How Has Harvard Responded To Noem’s Threats?

A spokesperson for the university told CNN that they were aware of the letter but stand by their earlier statement that they “will not surrender its independence or relinquish its constitutional rights.” The statement added: “If federal action is taken against a member of our community, we expect it will be based on clear evidence, follow established legal procedures, and respect the constitutional rights afforded to all individuals.”

What Is The Process For Revoking Harvard’s Tax Exempt Status?

The IRS is the only entity with the power to change an organization’s tax status—Trump could not do it on his own. The process typically begins with a full audit of the organization, former IRS taxpayer advocate Nina Olson told CNN, who said there is usually a “lot of back-and-forth” between the organization and the IRS before an official revocation notice is issued. Nonprofits, such as Harvard, can also challenge the IRS’ decision court. It’s unclear if the IRS will follow usual practices in assessing Harvard’s tax exempt status or be willing to negotiate with the university. Unnamed sources told CNN a decision is expected soon.

Key Background

The Trump administration accused Harvard in a letter last week of failing to “live up to both the intellectual and civil rights conditions that justify federal investment” and instructed it to adhere to a list of demands to continue receiving federal funding. The Trump administration said Harvard must implement “merit-based” hiring and admissions policies and “cease all preferences based on race, color, religion, sex, or national origin.” The letter also instructs the university to “commission an external party” to audit “programs with egregious records of antisemitism or other bias” and to “immediately shutter” all diversity, equity and inclusion initiatives, programs and policies. The university must also harden its student disciplinary procedures, including using “the Harvard police when necessary,” the letter states. Garber broadly rejected the terms of the letter, making Harvard the first university to refuse to comply with requirements stemming from the antisemitism task force investigations. The letter, “violates Harvard’s First Amendment rights and exceeds the statutory limits of the government’s authority under Title VI,” Garber wrote. He said the university has “taken many steps to address antisemitism on our campus” over the past 15 months and plans to “do much more.”

Crucial Quote

Stanford University President Jonathan Levin and Provost Jenny Martinez applauded Harvard for resisting the Trump administration’s demands in a statement to The Stanford Daily. “Harvard’s objections to the letter it received are rooted in the American tradition of liberty, a tradition essential to our country’s universities, and worth defending,” they wrote. Stanford is among multiple universities the Trump administration is threatening to withhold federal funding for if it does not make changes to various programs and policies.

Tangent

The Trump administration has threatened federal funding for multiple colleges and universities unless they agrees to make changes on issues varying from transgender inclusion and protest policies to security practices and educational programs. Columbia University agreed last month to hire a new security force, adopt a new definition of antisemitism and overhaul its Middle Eastern, South Asian and African Studies Department to recoup $400 million in federal funding and contracts the Trump administration froze over its handling of pro-Palestinian protests.

Further Reading

Columbia Agrees To Trump Administration’s Demands After Losing $400 Million In Federal Funds (Forbes)

Trump Administration Freezes $2.2 Billion In Harvard Federal Funding After University Refuses To Comply With Demands (Forbes)

IRS making plans to rescind Harvard’s tax-exempt status (CNN)

Trump administration asks IRS to revoke Harvard’s tax-exempt status (Washington Post)