The Trump administration has reached a settlement with Harvard University, with the institution agreeing to pay $500 million after prolonged talks.
President Donald Trump announced the deal at the White House, saying Education Secretary Linda McMahon was finalising details. He stated the funds would help operate trade schools teaching skills like artificial intelligence.
“And they’ll be paying about $500 million and they’ll be operating trade schools. They’re going to be teaching people how to do AI and lots of other things, engines, lots of things,” he said.
Harvard, based in Cambridge, Massachusetts, has not yet commented.
The settlement follows the administration’s efforts to withhold federal funding from universities over protests against Israel’s actions in Gaza, environmental policies, transgender rights, and diversity programmes. Critics warn these moves threaten academic freedom and free speech.
Trump accused universities like Harvard of allowing antisemitic behaviour during pro-Palestinian protests, but activists argue the government wrongly equates criticism of Israel with antisemitism. No investigations into Islamophobia have been announced.
Harvard reported that Jewish and Muslim students faced harassment amid the conflict. Other Ivy League schools, including Columbia University, have also settled funding disputes over similar allegations.
The administration tried to revoke over $2 billion in Harvard’s research grants and restrict international students, while threatening further funding cuts over alleged civil rights violations. Harvard President Alan Garber warned these actions could cost nearly $1 billion yearly, risking layoffs and hiring freezes.
Harvard has challenged the administration’s actions in court, accusing it of retaliation for resisting ideological demands. Judge Allison Burroughs blocked attempts to exclude international students and cut research funds.
Despite setbacks, the administration has escalated pressure, with the Department of Health and Human Services considering barring Harvard from federal contracts and funding entirely.