Watchdog group American Oversight filed a lawsuit on Monday against the Internal Revenue Service (IRS), the US Department of the Treasury, and the Department of Education, alleging that President Donald Trump’s administration unlawfully targeted Harvard University’s tax-exempt status for political retaliation.

The complaint, filed in the US District Court for the District of Columbia, seeks records under the Freedom of Information Act (FOIA) related to the administration’s reported efforts to direct the IRS to revoke Harvard’s §501(c)(3) tax-exempt designation. According to American Oversight, the move followed Harvard’s refusal to implement policy demands that would have required it to suppress diversity, equity, and inclusion (DEI) initiatives and modify admissions practices to reflect a politically defined notion of “American values.”

American Oversight argues that the administration’s actions form part of a broader pattern of retaliatory conduct against dissenting institutions. Citing threats against law firms, revocation of security clearances, and defunding of educational institutions as further examples, the group claims:

[T]he Trump Administration has demonstrated an eagerness to abuse its power to pursue politically–motivated investigations of and adverse actions against those who criticize the president’s actions, resist his unlawful agenda, or otherwise draw Trump’s ire—whether they be universities, law firms, or nonprofits that enforce the public’s right to government records. 

The complaint centers on President Trump’s April 15, 2025 TruthSocial post, where he suggested that Harvard no longer deserved its tax-exempt status, arguing it should depend on serving the public interest. Following the post, he applied direct pressure on the IRS to pursue formal action against the university.

The Department of Education had already initiated a contract and grant review into Harvard on March 31, 2025. On April 11, 2025, federal officials sent a letter to the university demanding a list of changes, including dismantling DEI programs and imposing ideological screening in hiring and admissions. Harvard President Alan Garner rejected the demands, with the university filing a lawsuit in the US District Court for the District of Massachusetts in response, seeking to block the Trump administration’s freeze.

In its own lawsuit, American Oversight points to provisions in the Internal Revenue Code that prohibit White House officials from directing the IRS to initiate audits or investigations against specific taxpayers. The complaint stresses that the production of these records is critical to understanding whether such prohibited conduct occurred.