Trump says Harvard to pay $500m in settlement as funding fight hits breaking point
The announcement comes after months of escalating conflict between the Trump administration and Harvard
- Oct 1, 2025,
- Updated Oct 1, 2025 12:45 PM IST
US President Donald Trump on Tuesday declared that his administration had secured a settlement with Harvard University, under which the institution would pay $500 million to resolve a long-running dispute with the federal government.
Speaking at the White House, Trump suggested the agreement was nearing conclusion. "Linda is finishing up the final details," he said, referring to Education Secretary Linda McMahon.
"And they’ll be paying about $500m 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 added.
Harvard has not confirmed the settlement, and it remains unclear whether the terms described by the president align with any agreement the university has considered.
The announcement comes after months of escalating conflict between the Trump administration and Harvard. The friction began with allegations that Harvard failed to protect Jewish and Israeli students from antisemitic incidents—claims the university denied.
Earlier this year, Trump announced the suspension of federal funding to Harvard and sought to block the university from enrolling international students. He insisted that his administration "wants nothing less than $500m from Harvard" before restoring research support.
Legal battle over funding
The standoff entered the courts this month when US District Judge Allison Burroughs in Boston ruled that the administration had acted unlawfully by terminating roughly $2.2 billion in grants awarded to Harvard. The decision was hailed as a victory for the university, which had refused to negotiate quietly.
Judge Burroughs’ order prevented further funding cuts, but Trump continued to push for a financial penalty, arguing Harvard must be held accountable for "allowing antisemitism to flourish on campus."
Harvard officials warned that federal cuts threatened the university’s finances, with Interim President Alan Garber cautioning that lost support could cost nearly $1 billion annually and force staff layoffs and a hiring freeze.
Trump targets universities nationwide
Harvard is not the only institution under scrutiny. The Trump administration has threatened to withhold funds from universities across the US over issues ranging from pro-Palestinian protests against Israel’s war in Gaza to climate policies, diversity programmes, and transgender rights.
Columbia University agreed in July to pay $200 million to resolve federal probes, while Brown University settled for $50 million. Trump said Harvard’s penalty would be "significantly larger" to reflect the seriousness of its alleged violations.
US President Donald Trump on Tuesday declared that his administration had secured a settlement with Harvard University, under which the institution would pay $500 million to resolve a long-running dispute with the federal government.
Speaking at the White House, Trump suggested the agreement was nearing conclusion. "Linda is finishing up the final details," he said, referring to Education Secretary Linda McMahon.
"And they’ll be paying about $500m 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 added.
Harvard has not confirmed the settlement, and it remains unclear whether the terms described by the president align with any agreement the university has considered.
The announcement comes after months of escalating conflict between the Trump administration and Harvard. The friction began with allegations that Harvard failed to protect Jewish and Israeli students from antisemitic incidents—claims the university denied.
Earlier this year, Trump announced the suspension of federal funding to Harvard and sought to block the university from enrolling international students. He insisted that his administration "wants nothing less than $500m from Harvard" before restoring research support.
Legal battle over funding
The standoff entered the courts this month when US District Judge Allison Burroughs in Boston ruled that the administration had acted unlawfully by terminating roughly $2.2 billion in grants awarded to Harvard. The decision was hailed as a victory for the university, which had refused to negotiate quietly.
Judge Burroughs’ order prevented further funding cuts, but Trump continued to push for a financial penalty, arguing Harvard must be held accountable for "allowing antisemitism to flourish on campus."
Harvard officials warned that federal cuts threatened the university’s finances, with Interim President Alan Garber cautioning that lost support could cost nearly $1 billion annually and force staff layoffs and a hiring freeze.
Trump targets universities nationwide
Harvard is not the only institution under scrutiny. The Trump administration has threatened to withhold funds from universities across the US over issues ranging from pro-Palestinian protests against Israel’s war in Gaza to climate policies, diversity programmes, and transgender rights.
Columbia University agreed in July to pay $200 million to resolve federal probes, while Brown University settled for $50 million. Trump said Harvard’s penalty would be "significantly larger" to reflect the seriousness of its alleged violations.