‘They’ll Be Paying About $500M’: Trump Says Harvard Deal Includes AI And Engineering Training

President Donald Trump on Tuesday revealed that his administration has reached a settlement with Harvard University that would require the Ivy League institution to pay $500 million to resolve a bitter legal and political standoff with the federal government.

Speaking from the White House, Trump told reporters the agreement was nearly finalized. “Linda is finishing up the final details,” he said, referencing Education Secretary Linda McMahon.

According to Trump, the deal not only involves the payout but also requires Harvard to operate trade schools focused on practical training. “They’ll be paying about $500 million, and they’ll be teaching people how to do AI, engines, and lots of other things,” he added.

Harvard Silent on Settlement Claims

Despite Trump’s announcement, Harvard has not confirmed the settlement. It remains uncertain whether the terms described by the president align with any negotiations the university has pursued behind the scenes.

The move comes after months of escalating tensions between the Trump administration and Harvard. The conflict originated with allegations that the university mishandled cases involving Jewish and Israeli students, accusations Trump linked to antisemitism on campus, charges Harvard has repeatedly denied.

A High-Stakes Legal Battle

Earlier this year, Trump escalated the fight by cutting federal funding to Harvard and attempting to block it from enrolling international students. He publicly insisted his administration would accept “nothing less than $500 million” before restoring research grants and funding.

The standoff reached the courts in September when US District Judge Allison Burroughs in Boston ruled that the administration acted unlawfully in terminating nearly $2.2 billion in federal research grants. The decision was widely seen as a major victory for Harvard, which had chosen to challenge the White House rather than quietly settle.

Although Judge Burroughs’ ruling stopped the administration from cutting off additional funds, Trump continued to demand a financial settlement, arguing Harvard must be held responsible for allegedly permitting antisemitism to persist on its campus.

Financial Fallout for Harvard

Harvard officials previously warned that Washington’s actions could devastate the university’s budget. Interim President Alan Garber said earlier this year that losing federal support might cost the school nearly $1 billion annually, forcing layoffs and a freeze on new hires.

Trump’s Broader Push Against US Universities

Harvard is not the only institution under fire. The Trump administration has threatened to withhold funding from colleges nationwide over issues ranging from pro-Palestinian protests against Israel’s war in Gaza to climate initiatives, diversity and inclusion programs, and transgender rights.

Other universities have already reached costly agreements. In July, Columbia University paid $200 million to settle federal investigations, while Brown University struck a $50 million deal to restore research funding. Trump has insisted that Harvard’s penalty must be “significantly larger,” citing what he described as the seriousness of its alleged violations.