The Trump administration has requested that the Internal Revenue Service (IRS) to strip Harvard University of its tax-exempt status. This request was made on Wednesday, following a suggestion by President Donald Trump.

What Happened: The inquiry was directed to Andrew De Mello, the IRS's acting chief counsel, by the Treasury Department. This move comes after Trump criticized Harvard on Truth Social, questioning its adherence to public interest criteria required for tax-exempt entities, reported The Hill.

Trump wrote on his social network on Tuesday, “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?'" 

Tax exemption is typically granted to non-profit and educational institutions that meet government standards, but they must refrain from political activities. The IRS holds the sole authority to review and revoke such statuses, traditionally without presidential influence.

The action is part of ongoing tensions between Harvard and the Republican administration, stemming from the university’s refusal to comply with certain federal funding conditions. Steve Rosenthal, a senior fellow at the Tax Policy Center, emphasized that the IRS should enforce tax laws impartially, not engage in political retribution.

See Also: Canada Eases Retaliatory Tariffs On US Goods As Trade Tensions Thaw Under Softer Trump Stance: Stocks React

Why It Matters: The Trump administration’s request to revoke Harvard’s tax-exempt status is the latest in a series of confrontations between the university and the federal government.

Earlier this month, the administration halted $2.2 billion in grants to Harvard after the university refused to comply with demands to eliminate diversity, equity, and inclusion programs and to screen international students for ideological concerns.

This refusal has put nearly $9 billion in federal funding at risk. The White House has issued similar threats to other prestigious institutions, including Columbia, Cornell, and Northwestern, indicating a broader strategy to influence educational policies at major universities.

In related developments, Trump appointed Gary Shapley as acting IRS commissioner on Tuesday, amid significant staff changes within the agency.

Photo Courtesy: Paul Brady Photography via Shutterstock.com

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This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal