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Trump threatens Harvard’s tax-exempt status after university refuses to cave to administration’s demands
Donald Trump has claimed that Harvard University “should lose its tax-exempt status” and be treated as a political entity following the institution’s rejection of what it categorized as government interference in its operations.
In a statement shared on his Truth Social platform, Trump asserted:
Perhaps Harvard should lose its Tax Exempt Status and be Taxed as a Political Entity if it continues to promote political, ideological, and purportedly terrorist-backed “Sickness?” Remember, Tax Exempt Status is fundamentally linked to serving the PUBLIC INTEREST!
Generally, universities, including Harvard, are exempt from federal income taxes due to their designation as entities serving the public good.
This latest conflict arises after the Trump administration decided to withhold $2 billion in federal grants from Harvard after the university declined to comply with what the president described as measures aimed at addressing antisemitism on campus. Many academics perceive the administration’s requests as an indirect attempt to limit academic freedoms.
Former president Barack Obama commended Harvard for standing firm and serving as an example to other educational institutions resisting federal overreach in their governance.
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Updated at 17.02 CEST
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White House press secretary Karoline Leavitt is set to address reporters shortly. I will provide updates on the key points from her briefing.
ShareLauren Gambino
Voters in Oakland are heading to the polls today to select a new mayor, with many viewing the election as a clash between a local champion and the influence of Big Tech funding.
Barbara Lee, who has represented Oakland in Congress for 25 years and is notably recognized for her dissenting stance against military force after the 9/11 attacks, faces formidable competition from former city councilman Loren Taylor.
While Lee enjoys the support of several local figures, including near-universal backing from the city council, former mayors, and labor unions, Taylor is receiving financial backing from a coalition of independent entities supported by affluent tech executives who have aimed to install more centrist Democrats in Democratic-dominated urban areas. This strategy has successfully placed tech-aligned mayors in places like San Francisco and San Jose and has funded the recalls of progressive leaders, including former Oakland mayor Sheng Thao, who faces federal bribery charges, which she denies.
“The tech influence and oligarchy that we see starting to emerge here in Oakland can be traced back to San Francisco politics,” remarked Pamela Drake, a seasoned activist and progressive commentator backing Lee.
Drake expressed concerns about a potential “tech takeover” of local governance, adding, “That poses a real threat to the decision-making power of Oakland residents.”
She referenced a Taylor-supporting committee that received substantial funding from Max Hodak, co-founder of Neuralink alongside Elon Musk, who has also led initiatives by the Trump administration to reduce the federal workforce. Hodak parted ways with Musk several years ago.
In an interview, Taylor, who narrowly lost the mayoral contest to Thao in 2022, rejected claims that his campaign is primarily funded by outside sources, asserting his fundraising support comes mostly from Oakland-based grassroots donors.
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‘Shock to the system’: farmers hit by Trump’s tariffs and cuts say they need another bailout
Nina Lakhani
Farmers across the United States are voicing fears of potential financial devastation without a significant federal bailout to offset losses caused by Donald Trump’s sweeping cuts and tumultuous tariffs.
Last year, rural counties showed overwhelming support for Trump, averaging 78% in farming-heavy regions, but concern is growing among the agricultural community. The climate crisis exacerbated by extreme weather conditions, coupled with the president’s ongoing trade tensions and cuts to vital federal support programs, has left many farmers feeling vulnerable and resigned to the need for another financial rescue.
Travis Johnson, who lost over 1,000 acres of cotton, sorghum, and corn due to torrential rain in the Rio Grande Valley (RGV) last month, spoke about the uncertainty farmers are facing:
There’s a lot of uncertainty, and I don’t want to be used as a bargaining chip. I am genuinely concerned.
RGV farmers engage in the sale of sorghum, wheat, corn, and vegetables, primarily to Mexico, while relying on imports for fertilizer and tools, as well as Mexican labor for affordable workforce needs. Johnson added:
We’ve endured two consecutive years of catastrophic conditions with decreasing prices and unpredictable weather… No farmer desires this outcome, but without a bailout, the repercussions could be devastating, leading to many losing their livelihoods.
The Trump administration has implemented extensive cuts to popular but underfunded federal climate and conservation programs aimed at reducing costs, decreasing greenhouse emissions, and enhancing agricultural outputs and environmental quality.
Additionally, the administration is shuttering local food initiatives that provide farmers with secure domestic markets, such as public schools and food banks, which help fortify farms against global economic fluctuations. USAID, which traditionally acquired around $2 billion annually in agricultural products for humanitarian efforts, has also seen significant reductions.
Compounding the losses from federal program cuts, farmers are facing chaotic trade conditions. Trump’s tariff announcements arrived when many were already committed to crop planting, making it nearly impossible to pivot to alternatives that may have a more favorable market.
Experts agree that this turmoil also serves as an opening for competing agricultural sectors abroad, resulting in disasters for US farmers. Ben Murray, a senior researcher at the consumer advocacy group Food and Water Watch, remarked:
Without a bailout, the potential consequences for farmers could be catastrophic, paving the way for Brazil to seize opportunities at their expense, all of this for a tax cut benefiting the affluent.
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Updated at 18.47 CEST
Judge drops case against man Pam Bondi called MS-13 leader and allows time to challenge deportation to El Salvador
On Tuesday, a federal judge decided to dismiss a gun charge against a man whom US attorney general Pam Bondi labeled a leader of the MS-13 gang, as prosecutors indicated the Trump administration sought to deport rather than prosecute him, according to Reuters.
US magistrate judge William Fitzpatrick has put this order on hold until Friday, allowing Henrry Josue Villatoro Santos, 24, to explore other legal means to contest his potential deportation to a prison in El Salvador.
Fitzpatrick emphasized that the criminal court was not the appropriate venue for addressing deportation-related matters, stating he has limited authority to challenge the decision by prosecutors to drop the charges.
“I cannot and will not intervene to second-guess decisions that are inherently prosecutorial,” Fitzpatrick stated during the proceedings in Alexandria, Virginia.
Villatoro Santos, a Salvadoran national residing unlawfully in Virginia, was arrested last month for allegedly possessing a firearm following an FBI SWAT team raid. During a press event, Bondi described him as one of the top leaders of MS-13 in the nation, highlighting his detention as a significant part of Donald Trump’s immigration enforcement strategy against gangs.
According to a criminal complaint, immigration agents noted signs of MS-13 affiliation, and they seized four firearms and ammunition from Villatoro Santos’ residence, but there was no mention of his claimed leadership role in the gang. He was not charged with any gang-related activities.
Villatoro Santos’ situation joins several others where Trump administration officials have publicly identified detained immigrants as gang leaders and terrorists without substantiating those assertions in court.
Shortly after his arrest, prosecutors sought to dismiss the charge, while Bondi announced he would face deportation proceedings. A federal prosecutor, John Blanchard, indicated to the judge that the future course of action for Villatoro Santos following the dismissal of the charge was uncertain.
An attorney representing Villatoro Santos requested the judge delay action on the dismissal, citing concerns about the risk of immediate deportation to El Salvador without a chance to contest the removal. The Trump administration has already deported numerous individuals purported to be connected to MS-13 and other transnational gangs to a prison in El Salvador without an opportunity for judicial review.
The attorney, Muhammad Elsayed, argued that the Trump administration has made a “high-profile spectacle” of Villatoro Santos’ case, emphasizing the need for assurances that he could defend his rights in immigration court.
“This was a clearly scrutinized political choice,” Elsayed remarked regarding the decision to abandon the criminal proceedings.
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Updated at 18.32 CEST
Donald Trump has characterized American farmers as being on the “frontline” amid the intensifying trade conflict with China, assuring them of his commitment to their protection.
Trump stated in a post on Truth Social:
Our farmers are GREAT, but due to their EXCELLENCE, they are invariably placed on the Front Line during trade negotiations or, in this instance, a Trade War with our adversaries like China.
He accused China of imposing harsh conditions on US farmers during his prior term but claimed that a “great trade deal was reached.”
“The USA will STAND FIRM to PROTECT OUR FARMERS!!!” he assured.
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Democratic senator Chris Van Hollen of Maryland has stated that he has yet to receive a response from El Salvador’s president, Nayib Bukele, regarding his request to travel to the country to meet with his constituent, Kilmar Armando Abrego Garcia.
“If I do not hear from him, and Abrego Garcia is not promptly returned, I plan to visit El Salvador this week to stand in solidarity with his family,” Van Hollen indicated to CNN.
I also hope to meet with Abrego Garcia in the notorious prison where he is held to convey that his family and friends are deeply worried about his well-being, as am I.
During a meeting with Donald Trump at the White House on Monday, Bukele described Van Hollen’s request as “preposterous” indicating he would not demand Abrego Garcia’s return.
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The Trump administration is reportedly considering closing 30 embassies and consulates abroad as part of a reevaluation of the US government’s diplomatic architecture, according to various reports.
A document from the State Department acquired by Punchbowl News and CNN outlines plans to close 10 embassies and 17 consulates, including those in Eritrea, Luxembourg, South Sudan, and Malta, consolidating them into larger embassies in adjacent regions.
The projected closures include consulates in Edinburgh, several in France, two in Germany, and one in Florence, Italy.
This initiative comes as the Trump administration is reportedly aiming to slash the State Department’s budget by nearly 50%.
ShareSam Levine
A watchdog organization filed a lawsuit on Monday against the Trump administration in response to its decision to eliminate a public tracker that monitored government spending as approved by Congress.
The director of the Office of Management and Budget (OMB), Russell Vought, justified deactivating the tracker by claiming it “requires the disclosure of sensitive, predecisional and deliberative information.” He noted to Congress in March that such disclosures could hinder discussions within the executive branch.
However, the lawsuit, representing the non-profit group Protect Democracy in US District Court in Washington, argues that federal law mandates the OMB to publicly disclose apportionment documents.
The complaint states:
Congress mandated prompt transparency for apportionments to prevent abuses of power and enhance oversight by Congress and the public regarding government expenditures.
Without this transparency, the president and OMB may misuse their authority over apportionment of federal funds without oversight or accountability from the public or Congress.
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Most public and private universities in the United States qualify for tax-exempt status due to their educational missions, which encompass teaching, research, and public service—activities the federal government recognizes as crucial for fostering individual productivity and civic engagement. Additionally, tax-exempt status is often conferred by state governments.
Under the federal tax code, designated tax-exempt colleges, universities, and their affiliated organizations are classified as public charities, meaning they are exempt from taxes on investment income, payout requirements, and other stipulations applicable to private foundations.
The following are the requirements from the IRS:
To gain tax-exempt status under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated solely for exempt purposes outlined in section 501(c)(3), and no earnings may benefit any private shareholder or individual. Additionally, organizations may not be classified as an action organization, meaning they must not engage in substantial lobbying activities or support political candidate campaigns.
Entities defined under section 501(c)(3) are commonly known as charitable organizations. Such organizations, with the exception of safety testing entities, are eligible to receive contributions that are tax-deductible as per Code section 170.
Furthermore, these organizations must not operate for the benefit of private interests, ensuring that none of their net earnings benefit private shareholders or individuals. In instances of excess benefit transactions with individuals with significant influence over the organization, an excise tax may be imposed on both the individual involved and any organizational managers participating in the transaction.
Section 501(c)(3) organizations are also limited in their political and legislative engagement (lobbying activities).
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Updated at 17.01 CEST
Trump threatens Harvard’s tax-exempt status after university refuses to cave to administration’s demands
Donald Trump has stated that Harvard “should lose its tax exempt status” and be subjected to taxation as a political entity after the Ivy League institution dismissed what it claimed to be governmental interference in its autonomy.
In a statement on his Truth Social platform, Trump remarked:
Perhaps Harvard should lose its Tax Exempt Status and be Taxed as a Political Entity if it keeps pushing political, ideological, and controversial “Sickness?” Remember, Tax Exempt Status is completely dependent on serving the PUBLIC INTEREST!
Typically, universities such as Harvard are exempt from federal income tax, classified as organizations providing a public service.
The latest development follows the Trump administration’s decision to withdraw $2 billion in federal funding to Harvard after the university refused to comply with what the president termed actions to counter antisemitism on campus. Educators, however, warn that the administration’s demands may represent a broader threat to academic freedoms.
Former president Barack Obama commended Harvard for exemplifying how higher education institutions can resist federal encroachments into their governance.
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Updated at 17.02 CEST
As previously noted, former president Joe Biden will deliver a speech in Chicago just before 5pm local time, focusing on the defense of Social Security.
However, Politico reports, not all Democrats are thrilled about Biden’s return to the public eye. One former Biden donor indicated that while the speeches are “acceptable” as expected from a former president, there is little enthusiasm among Democrats for him to be a central figure in national discourse.
A person affiliated with Biden’s campaign commented:
It takes a certain level of audacity for the individual mainly responsible for Donald Trump’s reelection to assert that his perspective is crucial right now. The country might benefit more if he quietly stepped back.
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RFK Jr urged to release nearly $400m allocated to help families combat heat
Nina Lakhani
Robert F Kennedy Jr, the secretary of health and human services, is under increased pressure to release nearly $400 million that Congress allocated to assist low-income families in maintaining air conditioning during the summer.
The funds are at risk after the staff managing a longstanding program were dismissed as part of the Trump administration’s initiative for perceived ‘efficiency’.
States and tribal governments are still awaiting funding designated by Congress for the Low Income Home Energy Assistance Program (LIHEAP), a bipartisan initiative that helped approximately 6 million households manage energy expenses last year.
The funding remains in limbo following the Trump administration’s decision to disband the division of energy assistance (DEA)—the office within the Department of Health and Human Services (HHS) responsible for overseeing this program—and the termination of its entire staff.
Calls are increasing for Kennedy to restore the staff and ensure that energy assistance reaches states as mandated by the administrative obligation to adhere to congressional appropriations.
An estimated one in six households are already struggling with energy bills, according to NEADA, putting millions at risk of utility shutoffs in what is expected to be another unbearably hot summer.
With the ongoing cost-of-living crisis, a quarter of households were unable to meet their energy expenses last year, per the Census Bureau.
In northern states, LIHEAP has helped maintain heat for more than 43,000 households in Michigan and 26,000 in Vermont. In the immediate term, however, residents in the southern states are likely to face the harshest impacts first, especially as the intensity of heat waves is projected to increase due to global warming.
For example, over 37,000 individuals in Arizona qualified for LIHEAP assistance last year. In Phoenix, the nation’s hottest large city, residents endured a record 113 consecutive days of temperatures at or above 100F. Even with the aid of LIHEAP, nearly one in four heat-related fatalities in Maricopa county occurred indoors. A significant number of victims lacked electricity and/or functioning air conditioning units.
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Updated at 15.58 CEST
Doge collecting federal data to remove undocumented migrants from housing and work – report
The Trump administration is reportedly utilizing personal data typically protected from disclosure to track undocumented immigrants in their workplaces, schools, and homes, with the aim of deporting them from housing and jobs, according to the Washington Post.
The report indicates that at the Department of Housing and Urban Development, officials are advancing a rule that would prohibit mixed-status households (where some members have legal status and others do not) from accessing public housing, according to various anonymous sources within the department. Affiliates from the so-called “Department of Government Efficiency” (Doge) are also looking to expel existing mixed-status households, asserting that undocumented immigrants must not benefit from public resources, even if they cohabit with eligible family members.
This initiative extends across multiple agencies: Last week, the Social Security Administration began classifying over 6,000 living immigrants as deceased, revoking their Social Security numbers and effectively eliminating their ability to work or obtain benefits as a strategy to encourage their departure from the country. Recently, federal tax and immigration enforcement authorities reached an agreement to share sensitive tax information concerning individuals suspected of residing unlawfully in the US.
The outcome is a remarkable effort to harness governmental data to validate the administration’s immigration strategies. The Post highlights that this involves data that individuals have voluntarily provided over the years while paying taxes or applying for housing—believing that this information would not be deployed against them for immigration enforcement. Legal advocates caution that this data-sharing practice infringes privacy regulations designed to maintain trust in government programs and services.
Tanya Broder, a senior attorney specializing in health and economic justice policy at the National Immigration Law Center, expressed to the Post:
It’s not just a matter concerning one group; it fundamentally impacts everyone. Privacy matters to all. No one desires their medical or tax information to be misused to target them.
The White House did not respond when approached for comment. In relation to inquiries, a DHS representative stated: “The government is finally adopting what should have been the standard practice all along: sharing information between federal agencies to address issues.”
“Inter-agency information sharing is crucial in identifying individuals in our country, including potential violent offenders, assessing risks related to public safety and terrorism, cleansing voter rolls, and determining the public benefits accessed by undocumented individuals at taxpayer expense,” remarked the department’s assistant secretary for public affairs.
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Trump donors eye potential bonanza if US succeeds with Greenland land-grab
Tom Perkins
Some of Donald Trump’s prominent campaign backers and investors, holding significant financial interests connected to the president, are strategically positioned to benefit from a potential US acquisition of Greenland, raising various ethical concerns regarding Trump’s controversial ambition for the Arctic territory.
The administration’s strategy aims to secure rare minerals critical for the US tech sector and national security while possibly reinstating oil and gas exploration: “This concerns vital minerals and natural resources,” stated Trump’s national security adviser, Mike Waltz, recently.
An analysis by the Guardian of campaign finance data and corporate records reveals that US tech leaders invested heavily in mining operations in Greenland, along with fossil fuel executives and cryptocurrency entrepreneurs involved in their own ventures for the region, collectively contributing at least $243 million to the president’s 2024 campaign.
Additionally, institutional investors backing Greenland mining projects have acquired $314 million worth of shares in Trump Media, primarily just ahead of the election.
“There exists a closed network among these investors, billionaires, Trump, and the crypto enterprises,” stated Emily DiVito, a senior economic policy advisor with the Groundwork Collaborative economic think tank. Greenland exemplifies this dynamic in action, she noted.
“These contributions are essentially investments, made with anticipated outcomes in mind, even if those intentions were unstated; the financial transactions transpired,” DiVito added.
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Updated at 14.38 CEST
Source
www.theguardian.com