Harvard University may soon lose its federal tax-exempt status, as the Internal Revenue Service (IRS) advances action at the request of the Trump administration. The effort is part of a broader crackdown on what officials describe as ideological bias and political activism in higher education institutions receiving public funds.
The Trump administration has accused Harvard of resisting reforms to its academic and institutional policies. In response to the university’s refusal to comply with proposed federal mandates, the administration froze over $2.2 billion in federal grants and halted $60 million in government contracts previously allocated to Harvard.
President Trump took to Truth Social to criticize the institution, declaring that Harvard “should lose its Tax Exempt Status and be Taxed as a Political Entity.” The administration contends that Harvard has strayed from its educational mission and now functions as a politically active entity, using its resources to promote agendas inconsistent with its nonprofit status.
The IRS is expected to make a formal decision in the coming days. If approved, the move would have historic implications, marking one of the few times a major university could lose its federal tax-exempt standing due to alleged political activity. The decision would require Harvard to begin paying taxes on its massive endowment, which exceeds $50 billion, and could open the door for similar actions against other elite universities.
The administration’s push to reform higher education follows mounting criticism over campus policies perceived as hostile to free speech, religious values, and conservative viewpoints. Harvard has been at the center of controversy over its handling of antisemitism on campus and its response to national political events, leading to accusations of institutional bias and a lack of ideological diversity.
University officials have rejected the administration’s demands, arguing that the proposed changes would violate academic freedom and legal protections. Harvard maintains that it remains in compliance with federal law and its charter as an educational institution.
As the investigation concludes, the IRS’s final determination could significantly alter the financial and political landscape of higher education in the United States.
