Harvard University faces the potential loss of its tax-exempt status as a result of President Donald Trump’s demands for changes at the prestigious institution. The Trump administration has requested the IRS to revoke Harvard’s tax-exempt status, citing concerns over the university’s handling of pro-Palestinian protests and its diversity, equity, and inclusion programs.

The White House has already frozen significant grants and contracts awarded to Harvard after the university refused to comply with demands such as implementing a mask ban and making changes to programs deemed to fuel antisemitic harassment. President Alan Garber defended Harvard’s autonomy, emphasizing the importance of freedom of thought and inquiry in higher education.

With an endowment of approximately $53 billion, Harvard has the financial resources to contest the White House’s actions. Legal experts suggest that losing its tax-exempt status could cost Harvard $500 million annually, but any decision would likely be subject to appeals.

This move reflects President Trump’s broader campaign against universities that he believes have contributed to a leftward shift in the country. Trump has targeted other institutions, such as Columbia University, and launched investigations into universities accused of permitting antisemitism.

The situation underscores the ongoing tensions between the federal government and academic institutions, with implications for the future of tax-exempt status for universities nationwide.