The Trump administration is demanding records on foreign students' activities at Harvard, threatening to revoke the university's tax-exempt status, and canceling $2.2 billion in multi-year federal grants and $60 million in contracts to Harvard University.

The administration is considering revoking Harvard's tax-exempt status due to claims that the university fails to adequately address antisemitism on campus and allegedly promotes political bias, which they argue violates the requirements for maintaining tax exemption as a public interest educational institution.

Harvard University has rejected the federal government's proposed agreement for continued funding, stating the university will not surrender its independence or constitutional rights. Harvard also asserts there is no legal basis to rescind its tax-exempt status and emphasizes that the tax exemption allows more funding to support scholarships, research, and technological advancements.

Losing tax-exempt status could force Harvard to pay federal taxes, potentially costing the university nearly $500 million annually, reducing funds available for scholarships, research, and economic growth driven by technological innovation.

Former President Barack Obama praised Harvard for rejecting what he called an unlawful attempt to stifle academic freedom and encouraged other institutions to follow Harvard’s example in maintaining intellectual inquiry and mutual respect.