US President Donald Trump warned Harvard University that it might lose its "Tax Exempt Status" if it continues to push political and terrorist-inspired "sickness". 

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This comes amid Trump's announcement to freeze more than $2 billion in grants to Harvard University after the Ivy League rejected the Trump administration's demands that it too audit the viewpoints of the student body. 

Trump on Tuesday (April 15) said that Harvard might have to pay tax as a political entity. 

Also read: Barack Obama's first reaction after Harvard funds cut, says university has 'set an example'

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"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?” Remember, Tax Exempt Status is totally contingent on acting in the PUBLIC INTEREST!," he posted on Truth Social.

The US has called out on the nation's most "prestigious universities and colleges". 

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"Harvard’s statement today reinforces the troubling entitlement mindset that is endemic in our nation's most prestigious universities and colleges – that federal investment does not come with the responsibility to uphold civil rights laws," a statement by the administration's Joint Task Force read. 

Also read: Trump administration freezes $2.2bn to Harvard after college defies demands

Prior to this, Harvard University made public a letter to students and staff defying a call for changes to its governance, hiring practices and admissions policy from the Trump administration. 

Calling it "unacceptable", the university, "The disruption of learning that has plagued campuses in recent years is unacceptable", adding that the harassment of Jewish students is intolerable.

Moreover, former President Barack Obama has backed Harvard University for standing against "unlawful attempts to stifle academic freedom."

WATCH | Trump freezes $2 billion Harvard funds over rejecting demands

"Harvard has set an example for other higher-ed institutions – rejecting an unlawful and ham-handed attempt to stifle academic freedom while taking concrete steps to make sure all students at Harvard can benefit from an environment of intellectual inquiry, rigorous debate and mutual respect. Let’s hope other institutions follow suit," Obama said in a post on X. 

Also read: Who is Zach Yadegari, young millionaire rejected by Ivy Leagues and top American universities

(With inputs from agencies)