The Internal Revenue Service (IRS) is reportedly preparing to revoke Harvard University’s tax-exempt status, signaling a major escalation in tensions between the Trump administration and the Ivy League institution. A final decision is expected soon as the university comes under increasing scrutiny for resisting policy demands made by federal officials.

According to individuals familiar with the matter, the potential move follows a broader push by the administration to hold universities accountable for their political and educational practices. Education Secretary Linda McMahon emphasized the seriousness of the issue, stating it was “certainly worth looking into” and hinted that other institutions could also face IRS reviews in the future.

The Trump administration has already blocked more than $2 billion in federal funding to Harvard, marking a significant financial penalty amid ongoing tensions. Officials argue that Harvard’s actions contradict public interest obligations tied to its nonprofit status.

If implemented, the IRS’s revocation of Harvard’s tax-exempt status would carry significant legal, financial, and reputational implications for the university. Harvard’s nonprofit designation provides substantial tax benefits and forms the foundation for many of its financial structures, including donations and endowment management.

The development reflects the administration’s broader efforts to challenge higher education institutions perceived to resist federal policy priorities. While the specific policy disputes at the center of the investigation have not been disclosed, the outcome could set a precedent affecting other elite universities and nonprofit entities.

As the final IRS ruling nears, universities across the country are closely monitoring the case for its potential implications. If Harvard loses its tax-exempt status, it would become one of the most high-profile examples of federal enforcement action targeting academia under President Donald Trump’s second term.