Harvard's tax-exempt status, ability to enrol foreign students under threat in showdown with Trump

Washington: The US Department of Homeland Security said Harvard University will lose its ability to enroll foreign students if it does not meet demands from the Trump administration in the government's latest escalation against the educational institution.

Department of Homeland Security Secretary Kristi Noem also announced on Wednesday the termination of two DHS grants totaling over $2.7 million to Harvard.

Noem said she wrote a letter to Harvard demanding records on what she called the "illegal and violent activities" of Harvard's foreign student visa holders by April 30.

"And if Harvard cannot verify it is in full compliance with its reporting requirements, the university will lose the privilege of enrolling foreign students," Noem said in a statement.

Harvard did not immediately respond to a request for comment.

President Donald Trump's administration has threatened universities with federal funding cuts over pro-Palestinian campus protests against US ally Israel's devastating military assault on Gaza after a deadly October 2023 attack by Palestinian Hamas militants.

Trump casts the protesters as foreign policy threats who are antisemitic and sympathetic to Hamas. Protesters, including some Jewish groups, say the Trump administration wrongly conflates their advocacy for Palestinian rights and criticism of Israel's actions in Gaza with support for extremism and antisemitism.

The Trump administration is also attempting to deport some foreign protesters and has revoked hundreds of visas across the country.

"With a $53.2 billion endowment, Harvard can fund its own chaos - DHS won't," Noem said, adding an "anti-American, pro-Hamas ideology" existed at Harvard.

Harvard has previously said it worked to fight antisemitism and other prejudice on its campus while preserving academic freedoms and the right to protest.

The Trump administration said late last month it was reviewing $9 billion in federal contracts and grants to Harvard and later called for restrictions - including a mask ban and removal of diversity, equity and inclusion programs - to be put in place for the university to continue receiving federal money.

Harvard on Monday rejected numerous demands that it said would cede control to the government. The Trump administration subsequently said it was freezing $2.3 billion in funding.

Trump also threatened on Tuesday to strip Harvard of its tax-exempt status. CNN reported on Wednesday the US Internal Revenue Service was making plans to rescind the tax-exempt status of Harvard and that a final decision was expected soon.

Human rights advocates have raised free speech and academic freedom concerns over the crackdown by the government.

The Trump administration has frozen or canceled some funding for universities like Columbia, Princeton, Brown, Cornell and Northwestern as well.

It has also threatened to withhold funding over culture war issues such as DEI programs and transgender policies.

Rights advocates have also raised concerns about Islamophobia and anti-Arab bias during the Israel-Gaza war. The Trump administration has not announced steps in response.