A congressional committee has suggested that four prestigious universities at the center of the college and anti-Semitism scandal could lose their tax-exempt status.
Republicans in the House of Representatives have launched an investigation into the alleged “failure of elite universities to adequately protect Jewish students from discrimination and harassment.” Some leaders have suggested they could lose federal funding as they face another financial hit.
The House Ways and Means Committee began the investigation this week after the presidents of Harvard, UPenn and MIT failed to unequivocally condemn the genocide of Jews during a hearing on anti-Semitism on Capitol Hill last month.
Harvard President Claudine Gay resigned on January 2 after weeks of pressure and UPenn President Liz Magill resigned on December 9.
Missouri Representative Jason Smith, chairman of the House Ways and Means Committee, sent a letter Wednesday to the presidents of Harvard, UPenn, Cornell and MIT about their tax-exempt status, according to the Washington Examiner.
He warned that there are “certain standards” that universities must meet to maintain “preferential treatment”, such as a tax exemption.
A congressional committee has suggested that Harvard, the University of Pennsylvania, Cornell University and MIT could all lose their tax-exempt status for their dealings with anti-Semitism on campus. Pictured: Pro-Palestine protest outside Harvard
Republicans in the House of Representatives have launched an investigation into the alleged “failure of elite universities to adequately protect Jewish students from discrimination and harassment.” Pictured: Protest outside UPenn
Rep. Jason Smith, chairman of the House Ways and Means Committee, sent a letter Wednesday to the presidents of Harvard, UPenn, Cornell and MIT about their tax exemption.
“As you know, your institutions are helped by the favorable treatment afforded to nonprofit, tax-exempt entities,” Smith, a Republican, wrote to Harvard Interim President Alan Garber, MIT President Sally Kornbluth, Cornell President Martha E Pollack and UPenn interim president Larry Jameson.
“Your universities also receive funding from federal grants and credits, support for student loan assistance, lucrative financial benefits from your tax-exempt status, and the favorable tax treatment of your institutions’ endowments.
“You may also be aware that your institutions must meet certain standards to receive this highly beneficial and preferential treatment.”
He also criticized the response of elite universities to the Hamas attacks on October 7.
“Given your respective universities’ disappointing and lackluster responses to Hamas’ attacks and your subsequent failure to adequately protect Jewish students from discrimination and harassment, we question whether your institutions meet the requirements to receive these benefits,” wrote he.
Most universities do not have to pay federal income taxes because they are classified as a public good.
But the politician used his letter to question whether elite institutions operate “primarily for educational purposes.”
Elite private universities also receive federal funding through student loans and research grants, making them subject to federal laws and regulations.
The House Ways and Means Committee began the investigation this week after the presidents of Harvard, UPenn and MIT failed to unequivocally condemn the genocide of Jews during a hearing on anti-Semitism on Capitol Hill last month. Pictured: MIT Building
Most universities don’t have to pay federal income taxes because they are classified as providing a public good, but Smith used his letter to question whether elite institutions operate “primarily for educational purposes.” In the photo: the campus of Cornell University
But Rep. Smith said addressing anti-Semitism may not comply with anti-discrimination laws and could impact the tax exemption.
He also pointed to former Harvard President Gay’s December 5 congressional testimony as an example of a lack of support for Jewish students.
The House Ways and Means Committee gave Harvard a two-week deadline to turn over information on its speech policies, tax records, funding for diversity, equity and inclusion programs and the decision-making process for releasing statements on world events.
Smith claimed that some of the universities’ policies intended for diversity and inclusion exclude Jewish students.
He accused them of “suppressing other opinions, avoiding different or opposing perspectives and raising questions about moral clarity.”
“Ultimately, as a committee of the U.S. House of Representatives with primary jurisdiction over tax-exempt institutions and the treatment of their donations, we must ask ourselves whether it is necessary to reexamine the current benefits and tax treatment provided to your institutions,” he wrote.
Republicans have also called for withholding all federal funding from Harvard and other liberal universities that support anti-Semitism.
Harvard has received more than $3 billion in taxpayer money between 2018 and 2022 and also benefits from tax breaks on its massive endowments. Between those same years, Harvard’s endowment totaled more than $50 billion, with $2 billion receiving special tax treatment, according to an OpenTheBooks analysis.
Harvard President Claudine Gay (left) resigned on January 2 after weeks of pressure and UPenn President Liz Magill (right) resigned on December 9
Republican House Speaker Elise Stefanik put liberal college presidents first, asking them whether “calling for genocide of Jews” would violate their schools’ codes of conduct
“We must EXPLORE the rot in American higher education,” Republican Party Chairwoman Elise Stefanik told DailyMail.com in a statement.
She promises to “cut off” schools that encourage anti-Semitism from federal funds.
The Republican top called it ‘unacceptable and unAmerican’ that taxpayer money goes to universities whose students and employees have ‘openly called for the genocide of the Jews.’
In December, the House of Representatives voted on a resolution to condemn anti-Semitism on college campuses and the presidents’ testimonies last week.
A Harvard spokesperson said that “the university is reviewing Chairman Smith’s letter and will contact the committee regarding her request.”
DailyMail.com has contacted Harvard, the University of Pennsylvania, Cornell University and MIT for comment.