President Donald Trump announced Tuesday that his administration is nearing a $500 million settlement with Harvard University, under which the Ivy League school would be required to operate trade schools across the United States.
Speaking at the White House, Trump framed the move as both a financial penalty and a workforce development strategy.
“They’d be paying about $500 million and they’ll be operating trade schools,” Trump said. “They’re going to be teaching people how to do AI and lots of other things — engines, lots of things. It’s a big investment in trade school done by very smart people, and then their sins are forgiven.”
Harvard has not yet responded to Trump’s remarks.
The proposal is the latest development in Trump’s unprecedented pressure campaign on elite universities, particularly Harvard, which the administration has accused of failing to protect Jewish students during pro-Palestinian protests. The university has denied the allegations, arguing that the government is attempting to interfere with its admissions, hiring, and academic autonomy.
Legal and Financial Battles
- In September, a Boston judge ordered the Trump administration to lift a freeze on about $2.6 billion in federal funds for Harvard, ruling that claims of antisemitism were being used as a “smokescreen” for an ideologically driven attack.
- Weeks later, the administration imposed new restrictions, forcing Harvard to use its own funds to cover student financial aid packages normally backed by federal support.
- In July, Columbia University agreed to a $200 million settlement and pledged to stop considering race in admissions or hiring.
- The University of Pennsylvania also shifted policy after Trump administration pressure, announcing it would ban transgender women from women’s sports.
The planned Harvard settlement, if finalised, would mark the largest financial penalty yet imposed on an Ivy League institution under Trump.
What Comes Next
Trump said the trade school plan would focus on technical training in areas like artificial intelligence, engineering, and skilled trades, though details of implementation remain unclear.
Critics argue the administration’s moves amount to government overreach into higher education, while Trump and his allies maintain that universities must “serve national priorities” instead of what he calls “woke ideology.”
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