Trump Says He’s ‘Taking Away’ Harvard’s Tax Exempt Status

Harvard University signaled Friday that it would resist President Trump’s renewed threat to revoke the school’s tax-exempt status, a move for which it said there was “no legal basis” as the president escalated his bitter dispute with the nation’s oldest university.

Harvard stopped short of explicitly pledging a legal challenge to a revocation of its tax status, a change that would upend the university’s finances. But a spokesperson for the university said in a statement that there was “no legal basis to rescind Harvard’s tax-exempt status.”

“Such an unprecedented action would endanger our ability to carry out our educational mission,” the statement said. “It would result in diminished financial aid for students, abandonment of critical medical research programs and lost opportunities for innovation. The unlawful use of this instrument more broadly would have grave consequences for the future of higher education in America.”

Mr. Trump declared Friday morning on social media that the government would be “taking away Harvard’s Tax Exempt Status.” Mr. Trump added, “It’s what they deserve.”

Despite Mr. Trump’s assertion online and Harvard’s sharp response, it was not immediately clear Friday whether the I.R.S. was in fact moving forward with revoking Harvard’s tax-exempt status, a change that could typically occur only after a lengthy process. Federal law prohibits the president from directing the I.R.S. to conduct tax investigations, and I.R.S. employees who receive such a command are required to report it to an internal government watchdog.

After Mr. Trump first publicly called for Harvard to lose its tax exemption last month, White House officials said that the I.R.S. would make its own conclusion about whether to do so.