The administration of President Trump has threatened to cancel Harvard University’s tax-exempt status, but the university has responded by claiming that this would be illegal.
From Palm Beach, Florida, Trump issued a stern warning to Harvard on Friday, stating on Truth Social that the university should be stripped of this privilege.
A representative from Harvard University responded by telling ABC News that there is no “legal basis” for the president to revoke the school’s tax-exempt status, citing concerns about the impact on the school’s educational goals.
An further consequence of the revocation, according to the source, would be a reduction in student financial aid, the end of vital medical research programs, and missed chances for innovation.
“The unauthorized use of this device more generally would have catastrophic ramifications for the future of higher education in America,” claims the Harvard representative.
In order to fund their instructional goal, the US government has long exempted colleges from taxation, according to Harvard.
Harvard University pointed out that the tax exemption allows more funding to go toward student scholarships, medical research that saves and improves lives, and technological developments that fuel economic growth.
The Trump administration claimed that Harvard University disregarded its anti-Semitism and diversity, equality, and inclusion policy directives.
More than $2.2 billion in federal grants and $60 million in multi-year contract value have been frozen as a result of government penalties.
Aside from the financial freeze and the tax-exempt threat, Harvard might also be prevented from accepting any more overseas students. The administration is being sued by the institution.