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For nearly a century, Cambridge has asked Harvard to increase its Payment in Lieu of Taxes — never questioning whether its most powerful tenant would be able to pay. But as the Trump administration threatens the University’s federal funding, Cambridge City Manager Yi-An Huang ’05 said the city recognizes that times are changing.
“The confidence we have is that we’re going to make it through this, and when things are a little more clear, we’re ready to try to get to that long-term agreement that I think will provide more predictability and stability,” Huang said in an interview with The Crimson.
Huang announced in March that Harvard, a tax-exempt nonprofit institution, agreed to pay Cambridge $6 million in voluntary payments. But in light of federal funding uncertainty, the PILOT agreement did not include a long-term deal.
“In this case, certainly it was a feeling that this was a pretty unprecedented situation in terms of what the federal administration was doing,” Huang said.
Two weeks after Huang’s announcement, the White House froze $2.2 billion in Harvard’s federal funding. After publicly lobbying Harvard to reject Trump’s demands, Cambridge is now following through on their promise to support the University.
“These are decisions that are affecting the Cambridge community. And I think it was important that the city have some voice in saying, ‘we really support the university, these are our values that we have always shared with the University,’” Huang added.
Huang said the city is willing to wait out the storm before pursuing a new long-term agreement.
“We had both aligned interests in terms of updating the agreement, but at some level, the city would always appreciate a greater PILOT payment,” Huang said. “We feel like there are very deep needs within the community that the University should be contributing toward as part of the PILOT agreement.”
But threats to Harvard’s tax-exempt status bring into question the future of the University’s PILOT payments.
According to CNN, the Internal Revenue Service is preparing to revoke Harvard’s tax-exempt status. The revocation could open the University up to a substantial tax liability, including on its land in Cambridge.
Despite this new opening, Huang made clear that Cambridge will not attempt to tax the University, and only plans to pursue a new long-term PILOT agreement.
“I would say we are very supportive of the University, and I would not anticipate that we’re going to take adverse action on the University in cooperation with the federal government,” Huang said.
Beyond PILOT payments, Huang also acknowledged the possibility that Cambridge would file an amicus brief in Harvard’s lawsuit against the federal government.
“I think we’d certainly be open to it,” he said, recognizing that the filing would be dependent on the case’s progress through the court.
As Harvard battles the federal government, Huang said the University’s commitment to its values benefits its affiliates — and its hometown.
“I think there is a sense of, ‘what is Cambridge without Harvard?’ — and then, ‘what would Cambridge be if Harvard didn’t feel like Harvard anymore?’” Huang said.
—Staff writer Shawn A. Boehmer can be reached at shawn.boehmer@thecrimson.com. Follow him on X @ShawnBoehmer.
—Staff writer Jack B. Reardon can be reached at jack.reardon@thecrimson.com. Follow him on X @JackBReardon.
