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Summarize
Trump announces $500M deal with Harvard to settle disputes
Harvard would also be setting up trade schools for teaching AI

Trump announces $500M deal with Harvard to settle disputes

Oct 01, 2025
01:49 pm

What's the story

US President Donald Trump has announced a $500 million deal with Harvard University to settle ongoing disputes. The announcement was made during an event in the Oval Office on Tuesday. "Linda is finishing up the final details," Trump said, referring to Education Secretary Linda McMahon. He added that as part of this agreement, Harvard would also be setting up trade schools for teaching artificial intelligence (AI) and other technical skills.

Unclear terms

Harvard yet to comment on the announcement

Harvard University, based in Cambridge, Massachusetts, has not yet commented on Trump's announcement. The deal comes after months of allegations from Trump that the university had violated federal civil rights law in its treatment of Jewish and Israeli students. These allegations led to Trump cutting federal funding and trying to ban the school from enrolling international students.

Court ruling

Federal judge rules against Trump administration

Earlier this month, a federal judge ruled that the Trump administration had unlawfully terminated about $2.2 billion in grants awarded to Harvard. The judge also said that the administration could no longer cut off research funding. This decision was seen as a major legal victory for Harvard in its ongoing battle with the Trump administration over federal funding and civil rights law violations.

Policy impact

Threats to withhold federal funds over various issues

The Trump administration has threatened schools, universities, and colleges with withholding federal funds over a range of issues. These include pro-Palestinian protests against Israel's war in Gaza, climate initiatives, transgender policies, and diversity practices. Harvard president Alan Garber had previously said these actions could cost the school nearly $1 billion annually.