WASHINGTON, Oct 1 — In a move that is as surprising as it is historic, former President Donald Trump announced that his administration is close to finalizing a $500 million settlement deal with Harvard University. As part of the deal, the elite institution would begin operating trade schools, offering programs in areas like artificial intelligence, engineering, and vocational skills.
“We’re in the process of getting very close,” Trump said from the White House. “They’d be paying about $500 million and they’ll be operating trade schools. They’re going to be teaching people how to do AI, engines, and lots of other things,” he added. “It’s a big investment in trade school done by very smart people, and then their sins are forgiven.”
While Harvard has not issued a formal response, the proposed settlement is being viewed as part of a broader effort by the Trump administration to reshape American higher education, particularly among elite institutions.
Background of the Conflict
The announcement comes amid a turbulent legal and political battle between Trump’s administration and Harvard. Trump and his officials have repeatedly accused Harvard of fostering “woke ideology” and not doing enough to protect Jewish students during recent pro-Palestinian protests.
Harvard, on the other hand, has pushed back, asserting that the federal government’s real objective is to interfere with the university’s autonomy—its admissions process, hiring practices, and academic curriculum.
A federal judge in Boston recently sided with Harvard, ordering the administration to unfreeze $2.6 billion in federal funding. The judge ruled that the Trump administration was using antisemitism as “a smokescreen for a targeted, ideologically motivated assault on this country’s premier universities.”
However, just two weeks later, the administration struck back by placing new funding restrictions on Harvard, requiring it to cover federal student aid with its own funds—adding pressure to bring the institution to the negotiating table.
Other Universities Also Under Scrutiny
Harvard isn’t the only Ivy League school to face pressure.
In July, Columbia University agreed to pay $200 million and comply with federal rules barring race-based considerations in admissions and hiring.
The University of Pennsylvania also made controversial changes, including a decision to ban transgender women from participating in women’s sports, aligning with Trump administration concerns.
A Turning Point for Elite Education?
What remains unclear is how exactly Harvard’s trade school programs will be structured, and whether this initiative is a genuine pivot toward skills-based education or a strategic move to end a politically charged standoff.
But one thing is certain: this agreement could mark a radical shift in how elite American universities engage with vocational education and federal oversight.
