Trump questions Harvard’s tax-exempt standing after federal authorities freezes funding

President Trump issued a brand new menace to Harvard College on Tuesday after the federal authorities froze $2.2 billion in grant funding for the establishment, suggesting that the Ivy League faculty “ought to lose its tax-exempt standing and be taxed as a political entity.”
The president’s newest assertion got here after the Cambridge, Massachusetts establishment introduced Monday that it’ll reject an inventory of calls for from the Trump administration governing the college’s insurance policies and management. Harvard is the newest college to be focused by the Trump administration, which is utilizing federal funding as leverage to attempt to change inner governance at universities and the way they handle pupil expression on campus.
“Maybe Harvard ought to lose its Tax Exempt Standing and be Taxed as a Political Entity if it retains pushing political, ideological, and terrorist impressed/supporting ‘Illness?'” Mr. Trump wrote on Reality Social Tuesday. “Bear in mind, Tax Exempt Standing is completely contingent on appearing within the PUBLIC INTEREST!”
Practically all private and non-private faculties in the US are exempt from paying taxes as a result of they’re instructional organizations, based on the Affiliation of American Universities.
Harvard rejects Trump’s calls for
The battle between some universities and the Trump administration stems from pro-Palestinian encampments that grew at Harvard Yard and on different school campuses final 12 months. The Trump administration stated on the finish of March it was reviewing about $9 billion in grants with Harvard because it investigates alleged antisemitic incidents at faculties.
A letter the Trump administration despatched Harvard on April 11 demanded a number of modifications, together with management reforms on the faculty and an finish to range, fairness and inclusion insurance policies. Harvard President Alan Garber responded by saying the college “won’t give up its independence or relinquish its constitutional rights.”
“I believe so many people wish to work at a spot and be a part of a neighborhood that stands up for its rules, proper?” Harvard political science professor Ryan Enos stated. “If you do not have that, you do not have something.”
Harvard’s endowment and federal funding
Earlier this 12 months, Harvard introduced a hiring freeze in response to “quickly shifting federal insurance policies.” A lot of the federal funding Harvard receives goes towards medical and scientific analysis.
Harvard Medical Faculty, for instance, says federal help has “enabled improvements in most cancers immunotherapy, therapies for diabetes and weight problems, therapies for autoimmune illnesses, the primary gene-editing remedy for sickle cell illness, and extra.”
“It isn’t simply that issues have been stopped chilly, which numerous it has,” Enos stated. “Someday, they’re doing analysis after which the subsequent day they cannot. It is also the truth that they cannot plan.”
However Shabbos Kestenbaum, who obtained his grasp’s diploma from Harvard and campaigned for Mr. Trump, says this kind of penalty on the college is lengthy overdue.
“What the federal authorities is doing is saying, ‘You have got a observe file of discrimination, you could have a observe file of violating the civil rights of your personal college students, and we’re not going to fund this,'” he stated. “Harvard is attempting to, , have its cake and eat it too.”
With Harvard reporting an endowment of greater than $53 billion final 12 months, some critics could marvel why the college wants federal funding in any respect.
“There may be some reality to that, after all. That is why it is essential for Harvard to combat,” Enos stated. “They’re kind of digging in for battle, and all of us have to arrange to undergo that now.”