Trump says deal for Harvard to run trade schools close to complete

President Donald Trump announced Tuesday that Harvard University has reached a tentative agreement with his administration to restore $2.4 billion in frozen federal grants. As part of the deal, the Ivy League school will pay $500 million and launch a new system of trade schools.

“This would be a giant trade school, or series of trade schools. It would be run by Harvard,” Trump revealed in the Oval Office to reporters, according to the New York Post.

“Now, this is something that we’re close to finalizing,” he explained. “We haven’t done it yet, but they’d put up $500 million. Interest and everything else will go to that account, meaning, go to the trade school. And you know, it’s a big investment in trade schools done by very smart people, and then their sins are forgiven.”

The president said Harvard’s trade schools will train students in fields including artificial intelligence.

“They’re going to be teaching people how to do AI and lots of other things — engines, lots of things. You know, we need people in trade schools,” Trump added. “I remember when I went to school, I saw people that weren’t particularly good students, but they could take a motor or an engine apart blindfolded and put it back blindfolded, but they weren’t too good at other things. Many of them ended up doing better than the people that were.”

“We have tremendous plants opening, and we want to have people at top level for those plants, whether it’s AI or whether it’s automobile plants.”

The deal follows months of tense negotiations between the administration and Harvard. The White House previously froze the university’s federal funding while accusing Harvard of failing to address antisemitism on campus amid widespread protests following Hamas’ October 2023 attack on Israel. The agreement is expected to resolve the funding dispute and end lawsuits filed against the administration.