After Hannes Meyer was given notice as Bauhaus Director because he did not suppress the political activities of the students, Ludwig Mies van der Rohe took over the directorship of the school. On taking office, the architect, who was regarded as an apolitical figure, issued a new college constitution that forbade student political activities. While his predecessor regarded himself as a comrade among comrades, Mies van der Rohe ruled in an authoritarian manner. He made changes to the syllabus, moving the emphasis to architecture. The Bauhaus benefited from contracts concluded during Hannes Meyer's directorship with industrial companies that brought additional income to the institute. Nevertheless the Nazis, who held the majority in the Dessau town council, passed a motion to close the Bauhaus on 22 August 1932. Staff contracts were illegally cancelled by the Nazis with effect from 1 October 1932. The subsequently paid damages and income from industry helped to finance the continued existence of the Bauhaus as a private institute run by Mies van der Rohe in Berlin.

By moving to Berlin in autumn 1932, the Bauhaus attempted to establish itself again, however after Hitler seized power the following year, it was prevented from continuing operation. After a police search of the premises for “communist material” that was intended to incriminate the Mayor of Dessau Fritz Hesse, the building was sealed off by the Gestapo on 11 April 1933. As the building was sealed off, the institute was unable to fulfil its contracts with industry, meaning that income that was essential for the continued existence of the Bauhaus was lost and the teaching staff saw no other option than to shut down.