October 1, 2025

In a stunning twist from the Oval Office, U.S. President Donald Trump announced a massive $500 million deal with Harvard University after months of heated talks. "Linda is finishing up the final details," Trump said on Tuesday, naming Education Secretary Linda McMahon. He said Harvard "will be operating trade schools" teaching exciting new skills like AI and engine technology. Harvard, based in Cambridge, Massachusetts, did not comment immediately on Trump’s announcement. The background to this deal, however, is charged with tension. The Trump administration has been waving the big stick — threatening to cut federal funds to several universities, including Ivy League giants, over their campus responses to the war in Gaza, climate change policies, transgender rights, and diversity programs. Rights groups worried about free speech and academic freedom have slammed these probes. Trump claimed universities like Harvard "allowed displays of antisemitism" during pro-Palestinian protests. But protesters and some Jewish groups counter that criticizing Israel’s actions or supporting Palestinian rights is not the same as supporting hate or extremism. While the government cracked down on protests linked to Palestine, it has not launched similar probes on Islamophobia. Harvard itself admitted in April that Jewish and Muslim students had faced serious abuse amid the Gaza conflict. Harvard is not alone. Columbia University paid $220 million in July to get back federal research money lost over similar antisemitism charges. The Trump administration had also threatened Harvard by trying to cut more than $2 billion in research grants. They even tried blocking international students from attending and questioned Harvard’s accreditation. Harvard President Alan Garber warned these moves could make the university lose nearly $1 billion every year, forcing tough cuts like layoffs and hiring freezes. Harvard fought back aggressively in court, accusing the government of punishing it unfairly for standing its ground on free speech and refusing to twist its programs to match political demands. A federal judge, Allison Burroughs, blocked some of these actions, preventing the government from stopping international students and cutting research funds. But the Trump team kept digging in. Just a day before this settlement, the U.S. Department of Health and Human Services said it might bar Harvard from all government contracts and funding. This $500 million deal with trade schools could be a game-changer, but the drama between Harvard and the Trump administration is far from over. Will Harvard keep its independence or buckle under pressure? Only time will tell.

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Tags: Donald trump, Harvard university, Federal funding, Pro-palestinian protests, Antisemitism allegations, Research grants,