Trump threatens Harvard after it defied government demands for overhaul


Adla Massoud
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US President Donald Trump on Tuesday intensified his confrontation with the nation’s leading universities, threatening to revoke Harvard University’s tax-exempt status if it failed to comply with broad federal oversight measures.

The threat is the latest escalation in Mr Trump’s push to reshape the running of elite academic institutions, which he accuses of harbouring ideological bias and failing to curb anti-Semitism on campuses. The US government froze $2.2 billion in federal funding to Harvard University, the oldest and wealthiest university in the country, after the school rejected a series of demands from the White House.

The effects will be felt most immediately by researchers at the Ivy League school and its partner institutions.

The measures, which call for sweeping changes to how Harvard is governed, its hiring practices and admissions procedures, build on an April 3 directive that ordered the university to shut down its diversity offices and co-operate with immigration screenings for international students.

Mr Trump said 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”.

President Donald Trump's post on Truth Social on April 15. Photo: Screengrab
President Donald Trump's post on Truth Social on April 15. Photo: Screengrab

In a letter to students and faculty, Harvard president Alan Garber said the university would not comply, calling the demands an overreach. “Harvard does not negotiate over its independence or its constitutional rights,” he wrote. Mr Garber said the school was “open to new information and different perspectives” but would not agree to demands that “go beyond the lawful authority of this or any administration”.

“No government, regardless of which party is in power, should dictate what private universities can teach, whom they can admit and hire, and which areas of study and inquiry they can pursue,” he said.

Mr Garber’s letter came after federal officials placed $9 billion in funding to Harvard and its affiliates under review, marking the administration’s first formal set of demands.

An MIT faculty member told The National that they felt invigorated to see Harvard pushing back. Former president Barack Obama said Harvard had “set an example” by rejecting “an unlawful and ham-handed attempt to stifle academic freedom”.

Acting Columbia University president Claire Shipman also stated late on Monday that the university would not agree to any federal conditions that “compromise its independence and autonomy as an educational institution”.

On March 21, the university, the centre of the pro-Palestinian protests, agreed to a set of conditions laid out by the Trump administration as a basis for resuming negotiations over the restoration of $400 million in federal funding that was revoked in March. These included banning certain types of masks, giving campus security officers the authority to arrest and remove individuals, and placing the Middle Eastern, South Asian and African Studies department under academic receivership.

A Princeton University professor criticised the Trump administration’s response to campus protests as “much too aggressive” and “crude”, warning it threatens academic freedom and free speech, in comments to The National. The professor acknowledged ideological bias on campuses but opposed government intervention.

There is a monoculture that “creates an environment where certain people don’t feel comfortable, like conservative Christians and Zionists, now because of Hamas”, they said. Asked why more faculty members haven’t spoken publicly, the Princeton professor said: “We’re punished for it. There’s widespread censorship and pressure to stay silent from those who disagree with the dominant campus ideology.”

The controversy follows a wave of student protests against Israel’s war in Gaza, which erupted across US campuses last year. Some demonstrations escalated into confrontations with police. Mr Trump and other Republicans have accused protesters of supporting Hamas, which the US designates as a terrorist organisation and was responsible for the attack on Israel on October 7, 2023.

In March, the US Department of Education launched investigations into 60 colleges and universities over alleged failures to address anti-Semitic harassment and discrimination. A Rutgers professor interviewed by The National said the Palestinian cause has become “a Trojan horse” on campuses.

“It explodes the liberal coalition that includes mainstream Zionists … which then cannot fight on these other fronts,” the professor said. “The US is no longer a safe environment for international students,” said the Rutgers professor, who is now considering leaving the country due to the current climate.

Rowers paddle down the Charles River near the campus of Harvard University in Cambridge, Massachussets. AP
Rowers paddle down the Charles River near the campus of Harvard University in Cambridge, Massachussets. AP
Who was Alfred Nobel?

The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.

  • In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
  • Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
  • Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Updated: April 16, 2025, 5:00 AM