Michael Hernandez
01 October 2025•Update: 01 October 2025
WASHINGTON
US President Donald Trump said Tuesday that a deal to end an ongoing standoff with Harvard University that has frozen billions of dollars in federal funding is "close to" being finalized.
"We're in the process of getting very close, and Linda's finishing up the final details, and they'd be paying about $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, lots of things," Trump said, referring to Education Secretary Linda McMahon.
"This would be a giant trade school, series of trade schools. It would be run by Harvard. Now, this is something that we're close to finalizing. We haven't done it yet," he added.
Trump signaled that the agreement's completion would mark the end of Harvard's woes with his administration, saying that should it be done, "their sins are forgiven."
On Monday, the Department of Health and Human Services (HHS) announced that it is referring Harvard to an internal office that handles suspension and debarment cases over alleged inaction on antisemitism.
If enforced, the decision would block Harvard from obtaining federal funds or signing contracts with the US government, potentially cutting off hundreds of millions of dollars in yearly research grants and funding.
The latest civil rights complaint represents a new flashpoint in tensions between the Trump administration and Harvard.
Officials have consistently accused the university of discriminatory practices and of failing to address antisemitic incidents -- claims Harvard has denied.
In June, the HHS Office for Civil Rights (OCR) issued a violation notice, stating that Harvard was "deliberately indifferent" to the discrimination and harassment faced by Jewish and Israeli students. Earlier this month, a federal judge ruled the administration had unlawfully frozen billions in Harvard’s multiyear federal grants and barred further freezes against the university.
OCR’s referral to HHS’ Suspension and Debarment Program launches a review that will decide whether Harvard will lose access to federal grants and contracts, and for how long. The university has 20 days to inform OCR if it will request a hearing.
“OCR's referral of Harvard for formal administrative proceedings reflects OCR's commitment to safeguard both taxpayer investments and the broader public interest,” OCR Director Paula M. Stannard said Monday.
