DMR News

Advancing Digital Conversations

Trump Previews $500 Million Deal with Harvard on Trade Schools

ByHilary Ong

Oct 3, 2025

Trump Previews $500 Million Deal with Harvard on Trade Schools

President Donald Trump on Tuesday previewed a $500 million deal with Harvard University, following months of talks about a potential settlement. The proposed deal, which would restore federal funding to the university, comes amid a broader fight between the administration and the school. “I guess we reached a deal with Harvard today, so we’ll see. What you have to do is paper it, right, Linda?” Trump asked Education Secretary Linda McMahon during an event in the Oval Office. He later clarified that the administration is “close to finalizing” the deal.

Trump broadly described the contours of the deal, stating that it would be a “series of trade schools” that “would be run by Harvard.” He said the schools would teach people how to do “AI and lots of other things, engines, lots of things.” Trump added, “they put up $500 million interest, and everything else would go to that account, meaning, go to the trade school. And, you know, it’s a big investment in trade school done by very smart people, and then their sins are forgiven.”

A Campaign of Pressure on Universities

The administration’s pressure on Harvard began with accusations of a failure to crack down on antisemitism on campus. A federal judge recently ruled in Harvard’s favor, restoring more than $2 billion in federal funding for research that had been frozen by the White House. This victory made Harvard the first university targeted by the Trump administration to take on the White House directly in court.

Since then, the administration has continued to find ways to exert pressure on the elite institution. The Department of Health and Human Services’ Office of Civil Rights has referred Harvard for suspension and debarment proceedings due to what it said was a violation of Title VI of the Civil Rights Act. Additionally, the Department of Education placed the university on “Heightened Cash Monitoring” status due to “growing concerns regarding the university’s financial position.” The Department of Commerce has also targeted the school’s patents.

Other Institutions Reach Agreements

While Harvard has been defiant, other schools have taken a less confrontational approach. In July, Columbia University agreed to pay the U.S. Treasury a $200 million settlement to restore its federal funding and agreed to have an independent monitor oversee implementation. Days later, Brown University reached a deal in which it would pay Rhode Island workforce development organizations $50 million in grants. The White House is also in negotiation with Cornell University and Northwestern University, and it is reportedly seeking a $1 billion deal with the University of California, Los Angeles. The school’s leadership has said that such a sum would devastate the university, and a lawsuit has been filed by faculty, staff, student organizations, and every labor union representing University of California workers.

Author’s Opinion

This potential deal, where a private university is effectively paying the government a “fine” to restore funding, blurs the line between public and private interests. By using federal funding as a political tool, the administration is establishing a new norm where a university’s relationship with the government is transactional and dependent on political favor. This could have a chilling effect on academic freedom and create a precedent where institutions are forced to align their missions with the political priorities of the White House. This is a troubling trend that suggests that the traditional independence of higher education is now being challenged by a new era of government oversight and control.


Featured image credit: Wikimedia Commons

For more stories like it, click the +Follow button at the top of this page to follow us.

Hilary Ong

Hello, from one tech geek to another. Not your beloved TechCrunch writer, but a writer with an avid interest in the fast-paced tech scenes and all the latest tech mojo. I bring with me a unique take towards tech with a honed applied psychology perspective to make tech news digestible. In other words, I deliver tech news that is easy to read.

Leave a Reply

Your email address will not be published. Required fields are marked *