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"Today the organization being threatened by the government is Harvard, tomorrow it could be a community organization feeding the hungry or helping children with disabilities."
President Donald Trump's administration is reportedly considering plans to revoke Harvard University's tax-exempt status, a major escalation against the Ivy League institution that critics said marks just the start of a broader assault on nonprofits that refuse to bow to the White House's demands.
CNN was first to report Wednesday that the Internal Revenue Service—where Trump has installed an ally as interim commissioner—is weighing whether to yank Harvard's tax exemption, news that came a day after the president suggested on his social media platform that "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?'"
Earlier this week, the Trump administration froze over $2 billion in federal funding for Harvard after the university's president said the institution would not comply with the president's policy demands. Specifically, as The Harvard Crimsonreported, Trump called on Harvard to "derecognize pro-Palestine student groups, audit its academic programs for viewpoint diversity, and expel students involved in an altercation at a 2023 pro-Palestine protest on the Harvard Business School campus."
Alan Garber, Harvard's president, said in response that "no government—regardless of which party is in power—should dictate what private universities can teach, whom they can admit and hire, and which areas of study and inquiry they can pursue."
Sen. Ron Wyden (D-Ore.), the top Democrat on the Senate Finance Committee, warned in a statement Thursday that "if Trump gets away with weaponizing the tax system to target a political enemy, every American is at risk."
"The First Amendment and federal tax law make clear no president can raise a university's taxes because he doesn't like what they teach," said Wyden. "If this corrupt shakedown scheme stands, nonprofits from churches to temples to hospitals could be forced to echo Trump's MAGA line or see their taxes hiked. Any Republican who claims to believe in the Constitution and doesn't speak up is responsible for what happens next."
"We know this assault won't end with Harvard, so I will be fighting back—and I encourage every single American to stand up against it and make their voices heard."
Trump's attack on Harvard is part of a broader campaign of retribution against universities and other institutions and organizations that are unwilling to capitulate to his administration.
The Guardianreported last week that administration officials "have launched investigations into progressive and climate organizations, colleges, and recipients of government grants."
The Vera Institute of Justice, a nonprofit that fights mass incarceration, said Wednesday that the Elon Musk-led Department of Government Efficiency informed the group of "its plan to assign a DOGE team" to Vera "as part of its larger plan to assign DOGE teams to 'every institute or agency that has congressional monies appropriated to it.'"
"We are sharing this information broadly with other nonprofits that receive federal funding—so they can be aware of DOGE's plan to assign teams to investigate their operations," said Vera president Nick Turner. "We also are exposing this latest intimidation tactic targeting private, independent mission-driven organizations and undermining civil society."
Cole Leiter, executive director of Americans Against Government Censorship—a coalition formed late last year amid a Republican-led assault on nonprofits—said that the administration's decision to target Harvard's tax-exempt status makes clear that "they want to start shutting down organizations that present any sort of opposition to their goals or ideology."
"Today the organization being threatened by the government is Harvard, tomorrow it could be a community organization feeding the hungry or helping children with disabilities," said Leiter. "If the Trump administration decides it wants to target schools, groups, churches, or welfare organizations because they don't fall in line with their political agenda, it will open the door for any future administration to use this same unchecked power against more American citizens."
"This is a dangerous practice," Leiter added, "and it is one that should end before it ever begins."
An IRS decision on Harvard's tax status is expected imminently, according to CNN and The New York Times, which both cited unnamed people familiar with the matter.
The Times noted that "federal law bars the president from either directly or indirectly requesting the IRS to investigate or audit specific targets."
"The IRS does at times revoke tax exemptions from organizations for conducting too many political or commercial activities, but those groups can appeal the agency's decision in court," the newspaper continued. "Any attempt to take away Harvard's tax exemption would be likely to face a legal challenge, which tax experts expect would be successful."
Harvard said in a statement that the "unprecedented action" of revoking the university's tax-exempt status "would endanger our ability to carry out our educational mission."
"It would result in diminished financial aid for students, abandonment of critical medical research programs, and lost opportunities for innovation," the university said. "The unlawful use of this instrument more broadly would have grave consequences for the future of higher education in America."
Rep. Lloyd Doggett (D-Texas), who led the charge last year against Republican legislation that would have granted the Trump administration sweeping power to strip nonprofits of their tax-exempt status, said Wednesday that the threat to nonprofits "is re-emerging as Trump targets Harvard for standing for academic freedom against his war on higher education and intellectual inquiry."
Rep. Jerry Nadler (D-N.Y.) called the Trump administration's latest attack on Harvard "bullshit" and echoed others' warnings about the broader threat to nonprofits.
"This deeply disturbing and blatantly unlawful action is Trump's latest foray in his war to politicize higher education and degrade any institution that refuses to bend the knee," Nadler wrote on social media. "We know this assault won't end with Harvard, so I will be fighting back—and I encourage every single American to stand up against it and make their voices heard."
"Donald Trump and Elon Musk are going after Direct File because it stops giant tax prep companies from ripping taxpayers off for services that should be free."
On the heels of Tax Day in the United States, The Associated Pressreported Wednesday that the Trump administration plans to end Direct File, a free electronic program for filing tax returns to the Internal Revenue Service, citing two unnamed sources familiar with the decision.
The news drew swift outrage, including from U.S. Sen. Elizabeth Warren (D-Mass.), who took aim at President Donald Trump and his adviser Elon Musk on the billionaire's social media platform X.
"Donald Trump and Elon Musk are going after Direct File because it stops giant tax prep companies from ripping taxpayers off for services that should be free," said Warren. "Americans want a free and easy way to file their taxes—Trump and Musk want to take that away."
According to the AP:
The program had been in limbo since the start of the Trump administration as Elon Musk and the Department of Government Efficiency have slashed their way through the federal government. Musk posted in February on his social media site, X, that he had "deleted" 18F, a government agency that worked on technology projects such as Direct File.
There was some hope that Musk, with his DOGE team of computer programmers, could take over Direct File and improve it. But the two people familiar with the decision to end Direct File said its future became clear when the IRS staff assigned to the program were told in mid-March to stop working on its development for the 2026 tax filing season.
Concerns about the future of the program—rolled out under the Biden administration—predated Musk's post. Dozens of congressional Republicans urged Trump to scrap the program in December, and the following month, the consumer advocacy group Public Citizen revealed that throughout those 29 lawmakers' careers, they had taken more than $1.8 million in campaign contributions from "Big Tax Prep and their proxies."
Public Citizen was among the organizations that responded to the reporting on Wednesday by blasting the Trump administration for "taking money out of the pockets of working people and giving it away to their Big Business and tech bro buddies."
Yale Law School professor Natasha Sarin—who was previously an official at the U.S. Treasury Department—wrote on social media that "this is terrible, terrible, terrible news for the American people and the tax system. The only winners are high-cost tax preparers."
"President Trump has said tax filing should be so simple that you could file on a postcard!" she noted. "The IRS had built something even better... It's devastating to watch so much good work undone."
While many Republicans in the U.S. House of Representatives pushed to kill Direct File, multiple Democrats from the chamber joined the chorus of condemnation in response to Wednesday's reporting.
"IRS Direct File gave people a simple and FREE way to file their taxes. Trump wants to get rid of it and allow tax preparation corporations to continue to rip taxpayers off with predatory fees," said Rep. Pramila Jayapal (D-Wash.). "So much for cutting costs for the American people."
Congressman Jerry Nadler (D-N.Y.) similarly said that "Trump's plan to kill Direct File is a gift to billion-dollar tax prep companies at the expense of American families. Once again, he's siding with profits over people."
Direct File, a prime example of making government more efficient, gave Americans an easy and free option to file their taxes. But Donald Trump cares more about his wealthy friends than working Americans so he wants to kill the program and make filing taxes harder. apnews.com/article/irs-...
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— Congressman Don Beyer (@beyer.house.gov) April 16, 2025 at 4:39 PM
Rohit Chopra, whose previous roles in government include directing the Consumer Financial Protection Bureau under former President Joe Biden, called out one company in particular, declaring the development "a big win for Intuit's profits on TurboTax, but a big loss for the public."
While Trump and Musk have framed their government-gutting work as an effort to make the federal bureaucracy more "efficient," their plans to destroy the program seem to accomplish the opposite. Before the news broke, Groundwork Collaborative senior fellow Kitty Richards said in a Tuesday statement that "Direct File is a crystal clear example of government efficiency at work."
"Taxpayers shouldn't have to pay exorbitant fees to predatory for-profit companies just to file their taxes," Richard asserteds. "As cost-of-living remains top of mind for so many Americans, the government should invest in and expand tools like Direct File that put money back into the pockets of working families."
"Unfortunately, the president is waging a war against the IRS—and hamstringing vital taxpayer services like Direct File in the process—so his wealthy donors can cheat on their taxes," she added. "The only people who benefit from a weakened IRS are billionaires like Donald Trump and Elon Musk."
"We all agree on a simple but powerful principle—that polluters should pay to clean up the mess that they have caused, and those that have polluted the most should pay the most," Sen. Chris Van Hollen said.
United States Sen. Chris Van Hollen and Rep. Jerry Nadler on Thursday announced the introduction of legislation that would require Big Oil firms to pay into a damages fund used to address the climate crisis.
The Polluters Pay Climate Fund Act, which Van Hollen first proposed in 2021, would levy charges on the largest companies that extract and refine fossil fuels in the U.S., based on a Superfund model. It would create a $1 trillion fund to "address harm and damages caused," with a significant proportion of the money spent on environmental justice in affected communities, Van Hollen said.
"We all agree on a simple but powerful principle—that polluters should pay to clean up the mess that they have caused, and those that have polluted the most should pay the most," Van Hollen said at a press conference.
Jamie Henn, director of Fossil Free Media, indicated that the proposal was groundbreaking.
"We're thrilled to be supporting the first ever federal bill that would make polluters pay for climate damages!" Henn wrote on social media.
BIG NEWS: We're thrilled to be supporting the *first ever* federal bill that would #MakePollutersPay for climate damages!!
The Polluters Pay Climate Fund act would raise *$1 TRILLION* from Big Oil to help families & communities deal with climate impacts. https://t.co/wX6lMOTexh
— Jamie Henn (@jamieclimate) September 12, 2024
The new bill targets only the "heaviest hitters," as Van Hollen put it: companies responsible for at least 1 billion tons of carbon dioxide emissions in the period between 2000 and 2022. The levies they face would be directly proportional to the amount of oil, gas, and coal extracted or refined, as determined by the U.S. Treasury and the U.S. Environmental Protection Agency.
In addition to Van Hollen and Nadler (D-N.Y.), the bicameral legislation was also introduced by Rep. Judy Chu (D-Calif.). It has five co-sponsors in the Senate, including Sen. Bernie Sanders (I-Vt.), and more than a dozen co-sponsors in the House of Representatives, including Rep. Alexandria Ocasio-Cortez (D-N.Y.).
Many state legislatures have considered "polluters pay" climate bills in recent years, and Vermont passed one in May. Van Hollen said a federal bill "would be a big, big step forward."
The bill has the backing of many dozens of environmental organizations around the country, several of which had representatives at Thursday's press conference.
"The fossil fuel industry has known about climate change for decades," Sara Chieffo, a vice president at the League of Conservation Voters, said at the event. "It's time they face the consequences of their deception and are held responsible for their actions that are destroying both lives and a livable, safe climate."
Phil Radford, Sierra Club's chief strategy officer, added that "for way too long, these companies have poisoned communities, spilled oil, polluted our air, caused all sorts of health problems, and gotten away with it."
"Today is an incredible moment where we are saying: No more," he said.
Advocates indicated that at least 40% of the funds would go toward environmental justice.