Harvard says no 'legal basis' for Trump to remove university's tax-exempt status

​​​​​​​By Darren Lyn

HOUSTON, United States (AA) - Harvard University pushed back at President Donald Trump who renewed his threat Friday to take away the tax-exempt status of the Ivy League school, according to multiple media outlets.

"We are going to be taking away Harvard's Tax Exempt Status. It's what they deserve," the president posted on his social media platform, reiterating an idea he first made public last month.

The school said there was no "legal basis" for Trump to rescind its tax-exempt status and that decision would erode its mission for students' access to the highest quality of education in America.

"Such an unprecedented action would endanger our ability to carry out our educational mission," a Harvard spokesperson said in a statement. "It would result in diminished financial aid for students, abandonment of critical medical research programs, and lost opportunities for innovation."

"The unlawful use of this instrument more broadly would have grave consequences for the future of higher education in America," the school added.

While legal experts said any attempts by Trump to rescind the tax-exempt status would likely face legal challenges, the president has not shied away from his disdain of Harvard after the school said it would not comply with his demands, including actions on antisemitism and the use of diversity, equity and inclusion (DEI) policies on campus.

The Trump administration has already frozen more than $2.2 billion in federal grants to the university, in addition to $60 million in a multi-year contract value to the institution. Harvard has sued the administration in response, alleging that the funding freeze violates the First Amendment and federal law, which bars the president from directly or indirectly ordering the Internal Revenue Service (IRS) to conduct or terminate an audit or investigation.

Many major public and private colleges in the US are exempt from federal income taxes because of their educational mission, research and public service. If the government were to remove Harvard from the IRS's 501(c)(3) code, it would cripple the university financially.

"The government has long exempted universities from taxes in order to support their educational mission," said a Harvard spokesperson. "The tax exemption means that more of every dollar can go toward scholarships for students, lifesaving and life-enhancing medical research, and technological advancements that drive economic growth."