US President Donald Trump escalated his confrontation with elite US universities on Tuesday, threatening to revoke Harvard University's tax-exempt status unless it agrees to sweeping federal oversight. The warning comes just a day after the administration froze $2.2 billion in federal funding earmarked for the university.

"Non-profit Harvard should lose its Tax Exempt Status and be Taxed as a Political Entity," Trump posted on his Truth Social platform, adding that tax exemption is "totally contingent on acting in the PUBLIC INTEREST."

The Trump administration has justified its actions as part of a broader crackdown on alleged antisemitism on college campuses, particularly in the wake of pro-Palestinian protests during "Israel's" ongoing genocide in Gaza.

Harvard has drawn particular scrutiny for refusing to comply with federal demands, including proposed changes to its admissions process, academic governance, and departmental oversight.

White House Press Secretary Karoline Leavitt echoed Trump's remarks, stating, "Trump wants to see Harvard apologize. And Harvard should apologize."

The pressure campaign is not limited to Harvard. Columbia University recently agreed to federal supervision of its Middle Eastern studies department under threat of losing $400 million in aid.

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More broadly, the administration has issued similar ultimatums to universities and law firms nationwide, pressing them to abandon diversity policies and instead align with ideologically driven federal priorities.

According to reports, Trump's team is demanding the elimination of diversity, equity, and inclusion (DEI) programs at Harvard, as well as changes to merit-based admissions that would bar consideration of race. The administration also wants federal oversight of academic departments accused of so-called "antisemitic bias", particularly in Middle Eastern and political studies.

Read more: Heads of Harvard Mideast studies center to resign under Trump pressure

Harvard, however, has refused to yield. President Alan Garber rejected the administration's demands outright, writing, "Neither Harvard nor any other private university can allow itself to be taken over by the federal government." He added that the institution will not "negotiate over its independence or its constitutional rights."

The university has already begun taking financial measures to mitigate the funding freeze, issuing $750 million in bonds as a buffer against the sudden loss of federal support.

Former President Barack Obama weighed in on the dispute, defending Harvard's stance. "Harvard has set an example for other higher-ed institutions — rejecting an unlawful and ham-handed attempt to stifle academic freedom," he posted on X. "Let's hope other institutions follow suit."

Harvard's student newspaper, The Crimson, praised the leadership's position, writing in an editorial, "Harvard sent its clearest, most courageous message to date: Our values aren't for sale." Still, the paper warned that solidarity across academia would be essential: "Harvard cannot stand alone."

As the standoff continues, it has become a flashpoint in the broader national debate over academic independence, free expression, and federal overreach—raising the stakes for how universities across the country will navigate political demands in the coming months.