US President Donald Trump said on Friday that he planned to revoke Harvard University's tax-exempt status.
It was not immediately clear whether he has the authority to unilaterally take that action and any attempt is likely to end up being decided by the courts.
“We are going to be taking away Harvard’s tax-exempt status. It’s what they deserve,” he wrote said in a post on his Truth Social platform.
Under US tax law, universities, churches, various non-profit groups and charities fall under the 501(c) 3 tax exemption. A change to this status could have ramifications for other universities beyond Harvard, as well as churches and non-profits.
A Harvard representative did not mince words when asked for a response from The National to Mr Trump's social media remarks.
“The government has long exempted universities from taxes in order to support their educational mission," the representative said. "The tax exemption means that more of every dollar can go towards scholarships for students, life-saving and life-enhancing medical research, and technological advancements that drive economic growth."
The representative also described Mr Trump's vow as unprecedented and said that, if it came to fruition, it would affect financial aid for students, as well as medical research programmes. "The unlawful use of this instrument more broadly would have grave consequences for the future of higher education in America."
Mr Trump did not expand on how he intended to remove Harvard's tax-exempt status. It is the latest in a row between Mr Trump and Harvard, one of the world's most prestigious universities.
The university last month announced plans to sue the Trump administration to stop a freeze on billions of dollars in funding. The lawsuit, filed in federal court, accuses the Trump administration of an unconstitutional campaign to “punish Harvard for protecting its constitutional rights”, according to the university's newspaper, The Crimson.
The Trump administration withheld funding from universities including Harvard and Columbia in response to pro-Palestine demonstrations, in what it was described as a failure to control anti-Semitism on campus.
“The trade-off put to Harvard and other universities is clear: allow the government to micromanage your academic institution or jeopardise the institution’s ability to pursue medical breakthroughs, scientific discoveries and innovative solutions,” Harvard’s lawyers wrote in April.
The Trump administration's decision to cut funding to Harvard followed $400 million in cuts to Columbia over accusations that the institutions tolerated anti-Semitism on campus.
In recent weeks, the White House has called for sweeping changes to how Harvard is governed, and sought to influence the university's hiring practices and admissions procedures.
It has also looked for a role in deciding how Harvard operates its diversity offices and to what extent it co-operates with immigration screenings for international students. Harvard has largely balked at those attempts, both in press statements and in lawsuits.
