In a dramatic development shaking up the American higher education landscape, former President Donald Trump announced today that his administration is nearing a financial settlement with Harvard University—one of the nation’s most prestigious institutions—that would see the Ivy League giant paying US$500 million and, in an unexpected move, operating trade schools as part of the agreement.
“We’re in the process of getting very close,” Trump declared at the White House briefing. “They’d be paying about US$500 million and they’ll be operating trade schools. They’re going to be teaching people how to do AI and lots of other things—engines, tech—lots of things. It’s a big investment in trade school done by very smart people, and then their sins are forgiven.”
While Harvard has not yet responded to requests for comment, the announcement adds fuel to an already tense standoff between Trump’s administration and elite universities. The former president has long accused institutions like Harvard of fostering “woke” ideology and failing to protect Jewish students amid recent campus unrest linked to pro-Palestinian protests—allegations the university strongly denies.
In fact, critics argue that the federal government has used the banner of anti-Semitism as a cover for deeper ideological interference in how universities operate—from admissions and hiring to academic freedom. Earlier in September, a Boston judge ruled against the Trump administration’s decision to freeze US$2.6 billion in federal funds, calling the move “an ideologically motivated assault on the country’s premier universities.”
Still, the Trump administration doubled down just weeks later, placing new restrictions on Harvard’s access to government money—forcing the university to use its own resources to fund student aid packages typically backed by federal funds.
And Harvard is not alone. Columbia University settled a US$200 million agreement in July and agreed to drop race-based admissions and hiring practices. Meanwhile, The University of Pennsylvania responded to the administration’s pressure by announcing a ban on transgender women from competing in women’s sports.
Why This Matters:
This proposed Harvard settlement may signal a seismic shift in the future of American higher education, blurring lines between elite academia and vocational training. The move could redefine Harvard’s legacy and the future of college access, equity, and freedom.
But beyond the headlines and political tension lies a deeper question for all of us:
What kind of education system do we want? One that includes, empowers, and innovates—or one shaped by political negotiations?
Change is coming. The only question is—who gets to decide its direction?
