
A pedestrian casts a shadow on a Harvard University sign after U.S. President Donald Trump said that his administration was close to a deal with Harvard University, in Cambridge, Massachusetts, U.S., September 30, 2025
| Photo Credit: Reuters
U.S. President Donald Trump said on Tuesday (September 30, 2025) that his administration was close to a deal with Harvard University that would include a $500 million payment by the Ivy League institution, after months of negotiations over school policies.
The administration has been wrangling with several prestigious universities, threatening to withhold federal funds over issues including pro-Palestinian protests against Israelâs war in Gaza, campus diversity and transgender policies.
âWe are in the process of getting very close,â Mr. Trump told reporters at an event in the Oval Office. âLinda is finishing up the final details,â he said, referring to Education Secretary Linda McMahon.
âAnd theyâll be paying about $500 million and theyâll be operating trade schools. Theyâre going to be teaching people how to do AI and lots of other things, engines, lots of things,â he said. He offered no further details on the deal.
Cambridge, Massachusetts-based Harvard had no immediate comment on Trumpâs remarks.
Rights advocates have raised free speech, privacy and academic freedom concerns over the Trump administrationâs probes into universities.
Mr. Trump has said that Harvard and other universities allowed displays of antisemitism during pro-Palestinian protests.
Protesters, including some Jewish groups, say the government wrongly equates criticism of Israelâs assault on Gaza and its occupation of Palestinian territories with antisemitism, and advocacy for Palestinian rights with support for extremism. The government has not announced probes into Islamophobia.
Harvard task forces said in late April that the schoolâs Jewish and Muslim students faced bigotry and abuse during the course of Israelâs war in Gaza after the October 2023 Hamas attack.
Actions against Harvard, other Ivy League schools
Several other Ivy League schools have made deals with the Trump administration in recent months, including Columbia University and Brown University, which accepted certain government demands. Columbia agreed to pay more than $220 million to the government and Brown said it will pay $50 million to support local workforce development.

The Trump administration zeroed in on the pro-Palestinian protest movement that roiled Harvardâs campus, moving to terminate more than $2 billion in research grant funding to the university.
It also sought to bar international students from attending the school, threatened Harvardâs accreditation status, and opened the door to cutting off more funds by finding it violated federal civil rights law.
Harvard President Alan Garber has said that the various federal actions since Trump returned to office in January could strip the school of nearly $1 billion annually, forcing it to lay off staff and freeze hiring.
Challenged in court
Harvard challenged some of those actions in court, arguing the Trump administration was retaliating against it in violation of its free-speech rights after it refused to meet officialsâ demands that it overhaul its governance, hiring and academic programs to align with their ideological agenda.
Its two lawsuits were assigned to U.S. District Judge Allison Burroughs, a Boston-based appointee of Democratic former President Barack Obama, who blocked the Trump administration from closing the door to international students and on September 3 barred it from continuing to cut off Harvardâs research funding.
But the administration in the days since the ruling has continued to escalate its fight with Harvard. A day before Trumpâs latest comments, the U.S. Department of Health and Human Services said that it would start a process that could lead to the school being barred from contracts with all government agencies or receiving funding.
The government has faced other legal setbacks in its attempts to freeze federal funding to universities. Last week, a federal judge ordered Trumpâs administration to restore more than $500 million of frozen federal grants to the University of California, Los Angeles.
Published â October 01, 2025 07:00 am IST