Trump Announces $500 Million Settlement With Harvard University

WASHINGTON — President Donald Trump announced Tuesday that his administration has reached a $500 million settlement with Harvard University, a deal he said would also push the university to launch new trade schools focused on artificial intelligence, engineering and workforce training.

"This deal forgives their sins," Trump said at the White House, describing the settlement as part of his administration's effort to hold elite universities accountable.

"We're in the process of getting very close, Linda's finishing up the final details, and they'd be paying about $500 million," Trump said.

"And they'll be operating trade schools, and they'll be teaching people how to do AI and lots of other things. Engines, lots of things," he added.

The announcement follows months of tension between Harvard and the Trump administration. Federal agencies had frozen billions in research grants earlier this year, though a federal judge later ruled the cuts illegal. The administration also accused Harvard of mishandling campus protests and failing to address antisemitism, allegations the university denied.

Trump threatened to block international student visas tied to institutions under federal scrutiny, adding to the pressure on Harvard. Similar settlements have been reached with other Ivy League schools, including Columbia University, which agreed to pay about $221 million, and Brown University, which finalized a $50 million deal earlier this year.

The $500 million payment represents a significant amount, even for a university with an endowment exceeding $50 billion. Beyond the financial terms, the agreement requires Harvard to establish vocational and AI-focused trade schools, signaling a possible shift in how elite universities align with national workforce priorities.

Harvard officials have not yet released a detailed statement but previously rejected what they called "factually incorrect" federal claims. Analysts say the settlement could set a precedent for other institutions under federal review and underscores the administration's leverage in reshaping higher education priorities.

The deal is expected to be finalized in the coming weeks, with the payment directed to federal programs. The structure and rollout of Harvard's new AI and engineering trade schools remain unclear, but the administration said it will closely monitor compliance.

As universities nationwide watch the outcome, the Harvard settlement could mark the start of a new era in which even the most prestigious institutions face heightened federal scrutiny.