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HomeWorldTrump says US government ‘reached a deal’ with Harvard University: Here’s what’s inside, from $500M payment to AI programs

Trump says US government ‘reached a deal’ with Harvard University: Here’s what’s inside, from $500M payment to AI programs

The Trump administration and Harvard University have tentatively agreed on a $500 million deal, including trade schools and AI programs.

October 01, 2025 / 04:42 IST
Trump Says US govt ‘reached a deal’ with Harvard University

US President Donald Trump on Tuesday announced that his administration had reached a tentative deal with Harvard University after months of a standoff over federal funding, protests, and campus policies.

“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,” Trump said while speaking to reporters in the Oval Office.

Turning to Education Secretary Linda McMahon, Trump added: “All you have to do is paper it, right, Linda?” to which she replied, “Yes, sir. Paper it out.”

The deal follows months of clashes between the Trump administration and the Ivy League institution over pro-Palestinian protests, diversity initiatives, and transgender policies.

Trump accused Harvard of allowing antisemitism on campus during demonstrations against Israel’s war in Gaza, while rights groups said the administration was equating criticism of Israel with antisemitism and suppressing academic freedom.

Harvard–White House standoff

The administration had earlier threatened to cut off more than $2 billion in federal research grants, revoke Harvard’s accreditation, and restrict international student enrollment. Harvard fought back in court, with a federal judge ruling that the government’s actions amounted to an “ideologically motivated assault” and blocking attempts to freeze research funding.

Harvard President Alan Garber previously warned that the government’s moves could strip the university of nearly $1 billion annually, forcing layoffs and a hiring freeze.

Wider crackdown on universities

The Harvard dispute is part of a broader campaign by the Trump administration against elite universities. Columbia University agreed in July to pay $220 million to restore federal research money, while Brown University settled for $50 million in workforce development funding.

Rights advocates continue to raise concerns over free speech, privacy, and academic independence as the administration pressures universities to align with its agenda.

Despite the tentative deal, Harvard has yet to issue an official statement.

Moneycontrol World Desk
first published: Oct 1, 2025 04:42 am

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