The Trump administration moved swiftly on Monday to penalize Harvard University after it declined to comply with federal demands the institution deemed unlawful. Harvard became the first university to openly reject the administration’s conditions, setting the stage for a major confrontation between the government and the country’s wealthiest academic institution. 

In response, federal officials announced they would freeze $2.2 billion in multi-year grants and suspend a $60 million contract with the university.

On Tuesday, President Donald Trump escalated the pressure, stating that Harvard should lose its tax-exempt status and be taxed like a political entity unless it yields to his demands to restructure its governance. 

While other universities have voiced resistance to federal involvement in academic affairs, Harvard's strong rebuke—calling the administration’s demands illegal—marked a turning point. The administration’s letter, sent Friday, ordered Harvard to reduce the influence of students and faculty in its governance, sparking widespread concern over government overreach in higher education.