After months of conflict over federal funding, the Trump administration and Harvard University are reportedly close to finalizing a historic $500 million settlement, according to a person familiar with the negotiations.
While key details are still being worked out, both parties have tentatively agreed to the unprecedented half-billion-dollar figure. A formal settlement could be completed within weeks.
If finalized, the agreement would restore Harvard’s access to federal research funding, more than $2.6 billion of which had been frozen amid a broad investigation. It would also close ongoing federal inquiries that have challenged the Ivy League institution for months.
Neither Harvard nor the White House has issued public statements on the matter.
Harvard Settlement Follows Escalating Showdown
What began as a federal probe by the Trump administration into allegations of antisemitism on Harvard’s campus quickly escalated into a broader confrontation over academic governance.
The US government accused the university of resisting reforms, retaliating by cutting government contracts, suspending funding, and attempting to restrict international student programs.
In response, Harvard filed two lawsuits alleging illegal retaliation after rejecting demands that university leaders considered a threat to academic freedom.
The proposed $500 million payment would be the largest of its kind, as the administration seeks financial penalties in settlements with elite universities.
For context, Columbia University agreed to pay $200 million, while Brown University settled for $50 million to restore access to federal funding or related programs.
Trump’s Political Battle with Ivy League Schools
The settlement talks occurred as President Trump intensified pressure on universities he viewed as liberal strongholds. During his second term, he emphasized higher education reform, arguing that elite institutions should be held accountable for “ideological bias” and “lack of transparency.”
Harvard, with its $53 billion endowment, has been a primary target of these efforts.