For more than a century, the majority of colleges and universities have not paid most taxes. The Revenue Act of 1909 excused nonprofits operating “exclusively for religious, charitable, or educational purposes” in order to continue acting in the public interest.

The Trump administration formally requested the IRS to revoke Harvard University's tax-exempt status, alleging a failure to adequately address antisemitism on campus. This action follows increased scrutiny of elite universities and a DOJ review of Harvard's federal contracts and grants.