MA ore that a month after Harvard University filed a complaint against President Donald Trump for frozen his federal funding, the president returned with another financial swing against the university.
“We will remove Harvard tax exemption”, Trump poster On Truth Social early Friday. “This is what they deserve!”
The immediate effect of Trump's declaration is not immediately clear. By American law, it is illegal For the president and other senior officials to ask the IRS to “conduct or terminate an audit or another survey on a particular taxpayer with regard to the tax responsibility of this taxpayer”.
Lily Batchelder, professor of the tax policy of the New York University of Law, described the announcement an “lawless action of the president”.
“If the president can announce that he revokes the status of tax exemption from a charity, we have gone through a Rubicon which has not clearly ended. What will prevent him or any president of armaments at IRS to intimidate opponents or political groups that he does not like in silence? ” she said.
The University of Harvard has been one of the first higher education establishments in recent weeks to firmly oppose the Trump administration – which has ordered the University to present itself to anti -dei policies, among other measures. The school decline put $ 2.2 billion in multi -year risky federal funding, and the administration threatened to draw more dollars in grants. Federal funding exceeds $ 2.4 billion distributed by the Harvard endowment for the financial year ending in June 2024, which represented almost 40% of the institution's total operational income.
A large part of the university staff applauded the university's decision, dozens of teachers promising to take salary reductions To help university fight Trump in court.
Universities and private colleges are exempt from tax if they are eligible for status 501 (C) (3) or non -profit, which requires that they work “exclusively for … educational purposes”, ” According to the association of American universities (AAU). Higher education schools must show that they comply with tax declarations, audits and reports. An institution may lose its status as a tax exemption if it does not comply with the rules concerning “evaluation, disclosure and use of charity”, the AAU said. Batcheder lists examples, such as the lobbying limits and members of the board of directors or executive directors using the charity for their personal gains.
“Tax exemption means that more than each dollar can go to students' scholarships, rescue and medical research improving life and technological progress that stimulates economic growth. There is no legal basis for canceling Harvard tax exemption,” said a spokesperson for Harvard University in a statement sent by email.
The IRS oriented the time of the Treasury for Comments, which did not immediately respond to a request.
“Such an unprecedented action would endanger our ability to carry out our educational mission,” added Harvard spokesperson. “This would lead to a reduction in financial aid for students, the abandonment of critical medical research programs and the loss of innovation possibilities. The illegal use of this instrument would more broadly have the consequences for the future of higher education in America. ”
For exercise 2024, Harvard distributed more than $ 749 million financial assistance and scholarships. About 55% of Harvard undergraduate students received needs -based scholarships.
The University of Harvard is also the subject of an investigation by the Trump administration on pro-Palestinian demonstrations and allegations of anti-Semitism on the campus. In April, the Ministry of Internal Security announced that it would cancel $ 2.7 million in subsidies in Harvard due to the participation of certain international students in pro-Palestinan events. “Harvard folds the knee to anti -Semitism – driven by his leadership without spin – comfortable a sump of extremist riots and threatens our national security,” said DHS secretary Kristi Noem.
Noem asked Harvard's files concerning holders of a visa of foreign students, saying that he would lose his certification of the student program and visitors' exchange if he did not behave. The program allows international students to study in the United States
