US President Donald Trump said Tuesday that his administration is finalizing a deal with Harvard University after months of conflict. Under the agreement, Harvard will pay $500 million to set up trade schools across the country. The Trump administration had been locked in a standoff with Harvard over federal funding, protests on campus, and diversity programs.
“We are in the process of getting very close. Linda is finishing up the final details,” Trump told reporters in the Oval Office, referring to Education Secretary Linda McMahon.
“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. “Their sins are forgiven.” Harvard has not yet issued a response.
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Why the Feud Began?
The dispute between Trump and Harvard began after pro-Palestinian protests on campus. Trump accused Harvard of tolerating antisemitism. He linked this to the university’s handling of demonstrations against Israel’s war in Gaza.
The White House expanded the fight to include accusations of political bias, scrutiny of Harvard’s ties to China, and opposition to diversity efforts. Rights groups said the administration’s investigations raised concerns about free speech and academic independence.
Pressure on Universities
Trump’s administration had threatened to cut off more than $2 billion in federal research grants to Harvard. Officials also considered blocking international students, questioning their accreditation, and cutting additional funds.
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Harvard President Alan Garber warned that these measures could cost the university nearly $1 billion every year. He said this would force layoffs, hiring freezes, and long-term damage to research. Harvard also challenged some actions in court, claiming the government was punishing it for refusing to change its governance and academic policies.
Other Universities Made Deals
Harvard is not alone. Columbia University agreed in July to pay $220 million to restore federal research funding. Brown University announced a $50 million payment for workforce development programs.
The administration said these agreements are part of a wider push to reform higher education. Trump accused top universities of failing to prevent antisemitism, while critics argued the government equated criticism of Israel with extremism.
Jewish and Muslim student groups both reported facing harassment and abuse on campus during the Gaza war, highlighting rising tensions across universities.
What Comes Next?
The deal with Harvard may end a bitter funding battle, but it opens new debates over free speech, academic freedom, and the role of government in higher education.
For now, Trump’s message is clear: elite universities will pay, trade schools will grow, and the political fight over campus protests and diversity is far from over.
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