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International Business Times
International Business Times

Trump Freezes Over $2 Billion in Harvard Funding, Threatens to Revoke University's Tax-Exempt Status

CAMBRIDGE, MASSACHUSETTS - APRIL 15: People walk in Harvard Yard at Harvard University on April 15, 2025 in Cambridge, Massachusetts. A Trump administration task force announced Monday that it would block Harvard University from receiving $2.2 billion in federal grants and $60 million in contracts after the Ivy League school defied demands to adopt new policies on student and faculty conduct and admissions.

On April 14, 2025, President Donald Trump sharply escalated his administration's standoff with Harvard University by announcing plans to revoke the school's tax-exempt status—just hours after freezing more than $2 billion (£1.5bn) in federal funding. The move is part of a broader crackdown on what the administration calls "divisive woke agendas," targeting Harvard's handling of pro-Palestinian protests and signaling a wider effort to reshape the culture and governance of elite academic institutions.

The funding freeze, enacted through executive action, halts federal grants essential for Harvard's research and academic programs, a significant blow to its operations. Hours later, the administration upped the ante by threatening Harvard's tax-exempt status, a move that could cost the university millions annually. In a Truth Social post on April 15, 2025, the administration stated: "Perhaps Harvard should lose its Tax Exempt Status and be Taxed as a Political Entity if it keeps pushing political, ideological, and terrorist inspired/supporting 'Sickness?' Remember, Tax Exempt Status is totally contingent on acting in the PUBLIC INTEREST!"

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