It looks like President Donald Trump may have some kind of deal for Harvard University. Trump told reporters on Tuesday in the Oval Office that the White House had “reached a deal” with Harvard, before cautioning that the agreement had not been finalized.
“All you have to do is paper it, right,” Trump asked Education Secretary Linda E. McMahon, who concurred. “It’ll be great.”
“We’re in the process of getting very close, Linda’s finishing up the final details, and they’d be paying about $500 million,” Trump said.
“And they’ll be operating trade schools, and they’ll be teaching people how to do AI and lots of other things. Engines, lots of things,” he added.
READ: Harvard wins legal battle; court rejects Trump’s $2 billion freeze (September 4, 2025)
The unexpected announcement comes after talks between the White House and Harvard stalled in recent weeks, following a judge’s ruling against the Trump administration’s block on $2.7 billion in federal grants and contracts to the University.
In April, Harvard University filed a federal lawsuit against the Trump administration in the U.S. District Court for the District of Massachusetts. The suit challenged the administration’s decision to freeze over $2.7 billion in federal research grants and contracts, including approximately $2.2 billion in grants and $60 million in contracts. Harvard argued that the funding freeze was politically motivated, violated constitutional protections including the First Amendment, and was carried out without due process.
This legal action was sparked by accusations from the administration that Harvard tolerated antisemitism during pro-Palestinian protests related to the Israel-Hamas conflict on campus.
Harvard sought to have the frozen funds immediately restored and to prevent further punitive measures such as revoking the university’s tax-exempt status and international student certifications. The lawsuit marked a significant escalation in a contentious dispute that highlighted tensions between the federal government and higher education institutions.
READ: Harvard to hand over employee details to Department of Homeland Security (August 4, 2025)
A federal judge later ruled that the funding freeze was unlawful, granting Harvard an important early victory in the case.
Trump said reaching a deal would mean that Harvard’s “sins are forgiven.”
“They’ve put up $500 million interest and everything else would go to that account — meaning it would go to the trade school,” he said. “It’s a big investment in trade school done by very smart people.”
While universities rely heavily on government grants to support research and innovation, they also need to maintain academic freedom and independence from political pressures. The Harvard-Trump case serves as a reminder of the delicate balance between accountability and autonomy in higher education. As both sides work toward finalizing their agreement, the outcome could influence future interactions between universities and the federal government, particularly regarding controversial social and political issues.
As federal and state governments reassess their roles in supporting education, the outcome of this dispute could set important precedents regarding how funding decisions are made and contested. The resolution may encourage universities and policymakers to seek more collaborative and less adversarial approaches to addressing social and political concerns on campuses, ultimately fostering a healthier environment for education and research innovation.