The US Internal Revenue Service plans to rescind the tax-exempt status of Harvard University, CNN reported, citing two sources familiar with the matter, with President Donald Trump calling the elite university a "joke".
A final decision is expected soon, CNN added on Wednesday.
The US Homeland Security also announced the cancellation of two DHS grants totalling over $2.7 million to Harvard as the administration moves to tighten its chokehold on the university.
"Today, Department of Homeland Security Secretary Kristi Noem announced the cancellation of two DHS grants totalling over $2.7 million to Harvard University, declaring it unfit to be entrusted with taxpayer dollars," the Department of Homeland Security said in a statement.
"With anti-American, pro-Hamas ideology poisoning its campus and classrooms, Harvard's position as a top institution of higher learning is a distant memory," Noem said in the statement.
Donald Trump threatens to revoke Harvard's tax-exempt status after freezing $2.2B in federal funding as the elite university rejects his sweeping demands tied to Gaza war protests and other issues.
'Harvard is a JOKE'
Trump, meanwhile, took to his Truth Social platform to continue targeting the prestigious university.
"Harvard can no longer be considered even a decent place of learning, and should not be considered on any list of the World's Great Universities or Colleges," Trump said on his Truth Social platform.
"Harvard is a JOKE, teaches Hate and Stupidity, and should no longer receive Federal Funds."
Harvard alone produced 162 Nobel prize winners.
The showdown between Trump and Harvard after the former announced a review into alleged anti-Semitism that has taken place on campus during pro-Palestine protests.
The move came after the university dismissed the leaders of the Middle Eastern Studies to seemingly distance itself from pro-Palestine voices.
It also came after Trump targeted Columbia University, which ignited a wave of pro-Palestine protests across US campuses.
