Explainer: Trump-Harvard controversy and its impact on students, immigrants

The Trump administration has escalated its conflict with Harvard University by threatening to revoke its tax-exempt status after freezing over $2 billion in federal funding. This move follows Harvard's refusal to comply with federal demands to alter its hiring, admissions, and teaching practices, which the administration claims are necessary to combat antisemitism on campus. 

 

Harvard contends that these demands infringe upon its institutional autonomy and academic freedom. In response, President Trump suggested that the university should lose its tax-exempt status if it continues to engage in what he describes as "political, ideological, and terrorist inspired/supporting 'Sickness.'

 

 Such a change could cost Harvard millions of dollars annually, despite its substantial $53 billion endowment. The administration's actions have sparked protests and legal challenges, highlighting a broader debate over the role of federal oversight in higher education.​ 

"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?" Trump wrote on Truth Social. "Remember, Tax Exempt Status is totally contingent on acting in the PUBLIC INTEREST!"

 

 

Point to note: Universities, as well as many charities and religious groups, are exempt from paying federal income taxes, which can be rvoked if the groups become involved in political activities or move away from their stated purposes.

 

What’s the Harvard-Trump controversy about?

The Trump administration has threatened to freeze $2.2 billion in federal research funding to Harvard University over the university’s refusal to comply with certain political demands—including cracking down on campus protests and increasing viewpoint diversity among faculty members.

 

What sparked the clash?

The controversy began when the Trump administration demanded that Harvard enforce stricter control over campus protests, particularly those related to Israel-Palestine tensions, and remove or scale back DEI initiatives that Trump’s team claims promote ideological bias. Harvard refused to comply, citing its commitment to academic freedom, institutional autonomy, and inclusive learning environments.

 

In retaliation, the administration announced a freeze on federal research grants, which make up a significant portion of Harvard’s funding—particularly in medical and scientific fields.

 

Why is funding so crucial?

While Harvard has a $53 billion endowment, much of it is restricted and cannot be used freely. Federal grants support major research efforts in public health, biomedical sciences, engineering, and more. Without this funding, several projects face disruption, and new hires are on hold. In fact, Harvard has paused faculty recruitment and may delay key research projects.

 

Some programs, especially at the T.H. Chan School of Public Health, rely on federal support for nearly half of their operational budgets.

 

Why is this happening? 

US President Trump has been openly critical of what he sees as liberal bias in elite academic institutions. The current situation escalated after Harvard rejected White House demands, resulting in retaliatory threats—including halting billions in federal funds for scientific research.

 

The administration is also considering broader punitive measures against other Ivy League institutions that resist ideological directives.: Trump has now issued a new warning, suggesting further financial consequences could follow.

 

What’s at Stake?

For Students:

• Harvard undergrads could lose out on research opportunities, mentorship, and access to federal grants that support innovative projects.
• A potential brain drain may follow if top faculty members and researchers leave due to funding uncertainty.

 

For Immigrant & International Students:

The controversy could complicate visa renewals or scholarships tied to federal research.

With immigration already a politically charged topic, the environment for non-U.S. students may become more challenging.

 

For Science & Research:

• Areas like cancer, Alzheimer’s, HIV, and public health research could suffer severe setbacks.
• Harvard’s T.H. Chan School of Public Health is particularly vulnerable—nearly 46% of its budget comes from federal grants.

 

Why can’t Harvard use its endowment?

Although Harvard holds a $53 billion endowment, much of it is restricted—earmarked for specific departments, projects, or financial aid. The university has also begun borrowing funds as a contingency, seeking $750 million from Wall Street.

 

Background: The 2020 ICE Directive

In July 2020, the Trump administration's Immigration and Customs Enforcement (ICE) issued a directive stating that international students on F-1 and J-1 visas must leave the United States if their universities switched to entirely online instruction due to the COVID-19 pandemic. This policy aimed to pressure institutions to resume in-person classes but was criticized for its lack of consideration for public health and the well-being of students.

 

Harvard and MIT's Legal Challenge

In response, Harvard University and the Massachusetts Institute of Technology (MIT) filed a lawsuit against the federal government, arguing that the directive violated the Administrative Procedure Act by being issued without proper notice and comment. They contended that the policy was politically motivated and would disrupt higher education by forcing universities to choose between public health and compliance with federal regulations .

 

Court's Intervention and Policy Reversal

The legal challenge led to a significant development when a federal judge ordered the Trump administration to rescind the directive. The Department of Homeland Security complied, reverting to previous guidance that allowed international students to remain in the U.S. while taking online courses .

 

Recent Developments: Executive Order 14188

In January 2025, President Trump signed Executive Order 14188, aiming to combat anti-Semitism in educational institutions. The order mandates that each executive agency head submit a report on actions to address anti-Semitism, including analyzing complaints related to campus incidents. Notably, the order directs the Secretary of Homeland Security and the Attorney General to monitor "alien students and staff," raising concerns about potential implications for international students and their rights .

 

Implications for Students and Immigrants

International Students: The 2020 directive created uncertainty and fear among international students regarding their ability to remain in the U.S. for their studies. While the policy was rescinded, the recent executive order introduces new concerns about increased surveillance and potential restrictions on foreign students.

 

Immigrant Communities: The broader implications of the executive order suggest a continued focus on monitoring and regulating immigrant populations within educational settings, potentially leading to heightened scrutiny and challenges for both students and staff.

 

What happens next?

The administration has hinted at additional measures if Harvard continues its resistance. Legal experts believe the courts may get involved to determine whether the federal government can condition research funding on political compliance.

 

This confrontation is being closely watched by universities, research institutions, students, and investors, as it could reshape how federal money is used to influence policy in higher education.  With inputs from AP