Harvard refuses to abide by Trump's demands, and now the IRS is considering rescinding its tax-exempt status

The Internal Revenue Service (IRS) is preparing plans to revoke Harvard University's tax-exempt status, according to reports from CNN.

The move comes amid a growing dispute between the administration of President Donald Trump and America's oldest university, which has rejected demands from the White House to modify its hiring practices and other policies.

The Trump administration has already frozen $2.26 billion in federal funds earmarked for the university, intensifying pressure on the institution, which, for its part, argues that the government's demands violate its autonomy and constitutional rights as a private university.

In addition, President Trump on Wednesday signaled that Harvard should lose its tax-exempt status. In a message posted Tuesday on Truth Social, Trump wrote: “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?' Remember, Tax Exempt Status is totally contingent on acting in the PUBLIC INTEREST!”

He further escalated his message, calling Harvard a "JOKE" and stating that the university should no longer receive federal funding.

The Trump Administration stands by its decision in order to combat anti-Semitismon college campuses, accusing Harvard of failing to meet civil rights obligations.

The IRS, now under the interim leadership of Gary Shapley, appointed by Trump this week, has the authority to revoke the tax-exempt status of nonprofits that violate rules set forth in Section 501(c)(3) of the Internal Revenue Code.

These rules require that the organizations operate for educational purposes and not engage in activities such as political campaigns or violations of public policy.