U.S. House committee to probe Penn’s tax-exempt status, citing charges of antisemitism

A second U.S. House committee is scrutinizing the University of Pennsylvania, this one exploring its tax-exempt status as an educational institution, given charges of antisemitism levied against it.

A letter from the chairman of the House Ways and Means Committee to interim Penn president J. Larry Jameson this week demands information on the university’s response to Hamas’ Oct. 7 attack on Israel and its protection of Jewish students, questioning whether the school is complying with anti-discrimination laws as required.

“If antisemitic speech crosses the line into unprotected conduct, it must be punished severely,” wrote chairman Jason Smith, a Republican from Missouri. “... Condemning barbaric terrorism against Israel and disgusting antisemitism should not be difficult. Protecting Jewish students on campus as you protect other students, should not be a challenge. This is not that hard.”

» READ MORE: Penn president Liz Magill has resigned following backlash over her testimony about antisemitism

The letter also went to the interim president of Harvard University, as well as the presidents of the Massachusetts Institute of Technology and Cornell University.

The committee has asked the universities to respond to several questions, including providing information on free speech and codes of conduct, policies on when a president will issue statements about national or international events, how the school is protecting Jewish students against discrimination and how much money it spends on diversity, equity and inclusion programs, which some critics have charged inadequately protect Jewish students.

“Penn will cooperate with the House Ways and Means Committee and share our continued work to keep our community safe and secure,” the university said in a statement Thursday.

Former Harvard president Claudine Gay and MIT president Sally Kornbluth testified alongside former Penn president Liz Magill at a House Committee on Education and the Workforce hearing in December on antisemitism on college campuses.

When asked if calling for the genocide of Jewish people constituted a violation of Penn’s code of conduct, Magill answered that it was a “context-dependent” decision; Gay and Kornbluth also used the word “context” in answering.

A backlash ensued, and Magill, who later attempted to clarify her congressional testimony response in a video message, resigned four days later. Gay resigned last week after also facing charges of plagiarism. Kornbluth remains on the job.

» READ MORE: Congressional committee opens investigation into Penn following president’s testimony on antisemitism

Cornell’s president Martha E. Pollack was not at that hearing, but Smith noted in his letter that at a November hearing before his committee, a Cornell student testified that the university “was silent when it came to condemning explicit antisemitism and endorsements of terrorism under the guise of free speech.” It also cited threats of violence against Jewish students posted on message boards at Cornell.

“These actions, inconsistencies, and lack of a substantive response raise several questions, including whether your institutions are fulfilling their educational purposes as required to receive 501(c)(3) tax-exempt status, and whether your institutions are adequately protecting Jewish students from harassment and acts of violence in compliance with anti-discrimination laws,” Smith wrote.

Penn already faces two other federal probes on its handling of antisemitism, one by the U.S. Department of Education’s Office of Civil Rights and the other by the House Committee on Education and the Workforce.

» READ MORE: What to know about the congressional investigation into antisemitism at Penn and other universities

The probe by the Ways and Means committee — Congress’ oldest committee, which oversees tax writing — is the latest fallout for Penn, which for the first time in its history experienced the resignation of a president less than 18 months into her tenure and the resignation of its board chair, Scott L. Bok. For Penn, controversy began after the Palestine Writes literature festival was held on campus in September, with critics charging that some speakers had a history of making antisemitic remarks.

Concerns intensified after Hamas’ attack and Israel’s subsequent war on Hamas, with multiple protests and demonstrations on campus, both in support of Palestinians and in support of Israel. Some donors led by private equity firm magnate Marc Rowan withheld donations and called for Magill’s and Bok’s resignations. The university experienced several antisemitic incidents last semester, including a swastika painted in an academic building and the vandalizing of Penn Hillel by someone shouting antisemitic slurs.

Magill unveiled a plan to combat antisemitism, including the establishment of a task force and a student advisory group to focus on the “Jewish student experience” there. The plan also called for addressing Islamophobia and other forms of hate.

» READ MORE: Under pressure from Jewish community, Penn president unveils plan to combat ant

For a while, the university backed Magill — until her congressional testimony, which brought harsh bipartisan rebukes, including from Pennsylvania Gov. Josh Shapiro, a Democrat.

Also on Thursday, Sens. John Fetterman and Bob Casey introduced federal legislation to address discrimination on college campuses that would inform students of their right to file a civil rights complaint with the Department of Education’s Office for Civil Rights.

“Our students deserve accountability when they’re made to feel unsafe in the classroom,” Casey said.

In his letter, Smith notes the “beneficial treatment provided to nonprofit, tax-exempt entities” and that the universities also receive federal grants and appropriations and other financial benefits, including “advantageous tax treatment of your institutions’ endowments.” Penn’s endowment stands at $21 billion.

As a condition, the university must meet certain standards, including complying with anti-discrimination laws, he wrote.

“Given the disappointing and lackluster responses by your respective universities to Hamas’ attacks and your subsequent failure to adequately protect Jewish students from discrimination and harassment, we question whether your institutions are satisfying the requirements to receive these benefits,” he wrote.

» READ MORE: Penn faculty fear the donor who started the effort to oust Liz Magill is attempting to set the agenda for trustees

Penn for years has been under criticism for resisting calls to make payments in lieu of taxes, also known as PILOTs. But the university in 2020 pledged to donate $100 million to the Philadelphia School District over 10 years to remediate environmental hazards, including asbestos and lead.