President Donald Trump has called for Harvard University to lose a valuable tax break, hours after his administration announced it is freezing more than $2billion in federal funds for the elite institution.

The White House has demanded that the university make changes to hiring, admissions and teaching practices.

Harvard however has rejected the demands, accusing the White House of trying to “control” its community.

Mr Trump is now threatening to go beyond withholding the federal funds, by targeting the school’s tax-exempt status.