The Trump administration is attempting to control American universities and higher education, with Harvard University as its highest-profile target. Citing the school’s alleged failures to address antisemitism on campus, the administration has threatened to cut off $2.2 billion in federal research funding to Harvard University and revoke its tax-exempt status. Harvard has contended that the administration’s measures infringe upon its constitutional rights and on April 21, 2025, President Alan Garber released a statement that announced the university had filed a lawsuit against the Trump administration, arguing the funding freeze is “unlawful and beyond the government’s authority.” The university maintains the administration’s demands threaten academic freedom and the constitutional autonomy of higher education institutions.
The dispute centers around Harvard’s response to rising campus tensions following the Israel-Hamas war that began on October 7, 2023. The protests on campus led the government to believe that there was antisemitism at Harvard, prompting inquiries into the university’s handling of hate speech and discrimination. Federal officials announced on April 14, that they would freeze federal research grants to Harvard, a move that has already disrupted scientific work. Dr. Donald Ingber, director of the Wyss Institute at Harvard who is identifying drug treatments that mitigate radiation damage, told NPR that “we basically have to bring it [experiments] to a halt unless we can find other funding”
In a separate move, President Trump said that he would revoke Harvard’s tax-exempt status, further escalating tensions. The Internal Revenue Service (IRS) is the government agency that is responsible for collecting taxes and implementing tax-related laws. It oversees organizations that qualify for tax-exempt status, such as charities, religious places of worship, and higher educational institutions like Harvard. Under section 501(c)(3) of the tax code, these organizations do not need to pay federal income taxes because they serve a public mission. Although President Trump wants to act, he has no legal authority to directly order the IRS.
However, his threat remains clear as he posted on Truth Social, “We are going to be taking away Harvard’s Tax Exempt Status. It’s what they deserve!” The Harvard Crimson comments that “Should Harvard’s tax-exempt status be revoked, financial aid programs and research projects would be hit the hardest.” Additionally, President Trump proposes an increase of the tax rate on Harvard’s $53 billion endowment, raising it from 1.4% to 21% to align with the corporate tax rate.
There has been backlash from the academic community. On April 22, nearly 200 university presidents, administrators, and leaders released a joint statement condemning what they described as “unprecedented government overreach and political interference now endangering American higher education.”
Harvard’s lawsuit is set to be heard on July 21. The case could set a defining precedent on the federal government’s ability to impose pressure on the independence of academic institutions through financial means.
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