Following a months-long fight for federal funding, the Trump administration and Harvard University are on the verge of signing a historic $500 million settlement, a person involved in the talks confirmed.
Record-Breaking Deal in the Works
Although negotiations continue and major points are still being ironed out, both sides have committed to the record-breaking half-billion-dollar amount, AP reported, citing the person. A formal agreement can be reached within weeks.
If signed, the deal would restore Harvard’s access to federal research grants, over $2.6 billion of which had been suspended during a broadening inquiry—and shut off federal probes that have haunted the Ivy League school for months.
Neither Harvard nor the White House has made public comments on the issue so far.
What started as a federal investigation by the Trump administration into charges of antisemitism on Harvard’s campus quickly grew into a wider clash about academic decision-making.
Allegations and Retaliation Claims
The US government charged that the university was being obstinate about instituting reforms and responded by cutting off government contracts, halting funding, and seeking to limit its international student programs.
The university acted with a double-barreled set of lawsuits claiming illegal retaliation by the administration after Harvard rejected a group of demands that campus leaders see as posing a threat to academic freedom.
Largest Settlement Yet with a University
The suggested $500 million payment would be the biggest amount yet as the administration demands financial penalties in its settlements with top universities.
On the other hand, Columbia University vowed to pay the government $200 million in exchange for an agreement to reinstate access to federal funds, while Brown University independently pledged to pay $50 million to Rhode Island workforce development organizations.
Political Pressure on Higher Education
The settlement talks came as President Trump ramped up pressure on universities that he viewed as liberal strongholds. In his second term, Trump made higher education reform a cornerstone of his campaign, arguing that elite institutions must be held accountable for “ideological bias” and “lack of transparency.”
Harvard, with its $53 billion endowment, has been a primary target.