OK, so they eliminated $2.6 billion in federal grants. Now they're preventing Harvard from enrolling foreign students.
Sounds bad, right? Definitely for the students, but even if you assume $100,000 per year per student, that's "only" $680 million. So their second attack is with reduced leverage. If your goal is to crush Harvard into compliance, you want the attacks to amplify, not weaken each time. So it's already feeling like a deflated balloon.
They want to strip Harvard of its tax exempt status, but that's around 20% in capital gains, which are only realized when they sell assets. So if I'm the president of Harvard, I ride it out; I sell just enough to get by for the next year until it winds its way to the Supreme Court and gets overturned. So they just need to sell $3 billion in assets and pay about $600 million in taxes. After a verdict is rendered, they might even get that amount back in the judgement.
Either way, once again a weaker attack than the previous one (assuming, as the Trump administration must) that any revocation of tax-exempt status will be overturned.
And what's left? Arresting the president and board of overseers? There aren't many things to realistically try after this. Time and momentum seem to be on Harvard's side.