US President Donald Trump has announced a $500 million settlement with Harvard University to fund trade schools, ending a months-long standoff over federal funding

Washington: US President Donald Trump on Tuesday said his administration has reached a settlement with Harvard University, under which the Ivy League institution will pay $500 million to set up trade schools across the United States.
Trump, speaking from the Oval Office, said the deal would support training in artificial intelligence, engineering, and other fields. “They’ll be paying about $500 million, and they’ll be operating trade schools… Their sins are forgiven,” Trump told reporters, adding that Education Secretary Linda McMahon is finalising the details.
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The agreement follows a prolonged clash between the Trump administration and Harvard over federal funding. The White House had accused Harvard of failing to tackle antisemitism on campus during pro-Palestinian protests against Israel’s war in Gaza, while also scrutinising its diversity policies, governance, and foreign ties.
Several other universities have also settled with the administration. Columbia University agreed to pay $220 million earlier this year, while Brown University pledged $50 million for workforce development.
Harvard had previously warned that federal actions under Trump could cost the institution nearly $1 billion annually, affecting staff and research. The school has also challenged some of the government’s moves in court, alleging violations of free-speech rights.
Rights groups, meanwhile, have raised concerns that such federal interventions threaten academic freedom, student rights, and free expression on US campuses.
(With AFP inputs)
Published: 01 Oct 2025, 11:28 am IST
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