Harvard’s tax-exempt status threatened

Ability to host foreign students also in jeopardy

Harvard Gates

Harvard University | PHOTOGRAPH BY NIKO YAITANES/HARVARD MAGAZINE

In two further developments in the federal government’s demands of Harvard, Internal Revenue Service acting chief legal counsel Andrew De Mello has been asked by officials in the Treasury department to begin the process of revoking Harvard’s tax-exempt status, according to The Wall Street Journal; simultaneously, Homeland Security Secretary Kristi Noem has threatened to revoke Harvard’s authorization to host international students.

An April 16 press release posted to the Department of Homeland Security (DHS) website stated that Noem had canceled two DHS grants to Harvard totaling $2.7 million. She also wrote a letter to the University demanding records “by April 30, 2025” of any “illegal and violent activities” by foreign students studying at Harvard on student visas. Failure to comply, the press statement read, would lead to “immediate loss of Student and Exchange Visitor Program (SEVP) certification,” which would cause the University to “lose the privilege of enrolling foreign students.” The Student and Exchange Visitor Program, which manages foreign students and exchange visitors to the United States through the Student and Exchange Visitor Information System, is run by U.S. Immigration and Customs Enforcement, a division of the U.S. Department of Homeland Security.

The separate threat to Harvard’s tax-exempt status would make charitable contributions to the University taxable and force Harvard to pay income and property taxes (the University currently makes payments in lieu of taxes to Boston and Cambridge, its two principal host communities).

Harvard spokesperson Sarah Kennedy O’Reilly said that “Harvard is aware of the Department of Homeland Security’s letter regarding grant cancellations and scrutiny of foreign student visas, which—like the Administration’s announcement of the freeze of $2.2 billion in grants and $60 million in contracts, and reports of the revocation of Harvard’s 501(c)(3) tax-exempt status—follows on the heels of our statement that Harvard will not surrender its independence or relinquish its constitutional rights. We continue to stand by that statement. We will continue to comply with the law and expect the Administration to do the same.”

She added that “Harvard values the rule of law and expects all members of our community to comply with University policies and applicable legal standards. If federal action is taken against a member of our community, we expect it will be based on clear evidence, follow established legal procedures, and respect the constitutional rights afforded to all individuals.”

Read more articles by Jonathan Shaw

You might also like

Harvard Stabilizes Finances With Strong Endowment Returns, Philanthropy

Small operating surplus is dwarfed by reduced federal research support and endowment tax liabilities.

Trump Administration Asks Appeals Court to Restore Harvard Funding Cuts

The government’s lawyers homed in on a jurisdictional argument for its authority to to terminate federal grants. 

Trump Administration Will Investigate Alleged Visa Fraud at Harvard

The announcement comes two days after a federal appeals court heard arguments about an international students ban.

Most popular

Keri Russell Calls ‘The Diplomat’ a Love Letter to Public Servants

A Harvard Kennedy School event looks behind the scenes of the Netflix drama. 

Harvard Law School Announces $31.4 Million Donation

The school’s largest-ever gift comes after a year of record fundraising.

Harvard College Applications Surge 15 Percent

Of 1,648 students in the class of 2030, 39 percent will pay no tuition.

Explore More From Current Issue

Black and white portrait of a woman with medium-length hair, smiling softly.

The outgoing executive director and Harvard Business School graduate went from dancing The Nutcracker to growing a ballet company.

A girl in blue boots stands on a cliff, holding a leash attached to a glowing, digital dog.

Establishing legal responsibility for autonomous agents

Delicate green cocoa pods and small white flowers on a tree branch, surrounded by soft greenery.

Harvard researchers investigate climate’s impact on cocoa crops, innovations in nasal vaccines, and links between pain and skull marrow.