Trump closes in on massive Harvard payday

Harvard University and the Donald Trump administration are nearing a settlement that could end a months-long standoff over federal research funding. According to four people familiar with the matter, the proposed agreement would commit Harvard to invest $500 million in vocational programs, education and research in exchange for the restoration of billions in federal grants and the termination of ongoing federal investigations. Knewz.com has learned that the deal, still pending final approval from President Trump and senior Harvard officials, could become a landmark settlement between a U.S. administration and an academic institution.

Terms of the deal

Under the draft framework, Harvard would avoid paying the federal government directly while meeting President Trump’s demand for a financial commitment that exceeds Columbia University’s $250 million settlement. Harvard would also continue initiatives to address antisemitism on campus. In return, the administration would lift freezes on research grants, end multiple Justice and Commerce Department investigations and halt efforts to limit enrollment for thousands of international students. The arrangement would also prevent the appointment of a federal monitor, a move Harvard views as critical to maintaining its academic independence. “A deal would allow Mr. Trump to claim that Harvard forked over $500 million amid pressure from him. For Harvard, the deal would allow the school to remain one of the most robust higher education institutions in the country. Harvard has insisted that any settlement must not jeopardize its academic freedom, and Mr. Trump has taken a keen interest in the details,” reports have mentioned.

The dispute between Harvard and the White House

The dispute started in the spring when the Trump administration sent Harvard a set of proposed reforms aimed at student life and faculty governance. The proposals included surveys of students’ political views, audits of course content and limits on the influence of non-tenured faculty members. Harvard rejected the list outright. Within hours, the administration froze billions in research funding and signaled it would review Harvard’s compliance with a range of federal laws. Harvard’s $53 billion endowment is the largest in higher education, yet much of it is restricted by donor agreements. University officials have warned that the ongoing freeze, combined with higher federal taxes on endowments, could leave the school facing a budget shortfall approaching $1 billion annually. In April, Harvard filed a lawsuit, arguing the funding freeze and investigations were politically motivated and violated constitutional protections.

The unresolved dispute over data and oversight

One unresolved issue involves the White House’s demand for detailed admissions records, including information on applicants’ race, gender and academic performance. The administration argues that this data is necessary to ensure compliance with last year’s Supreme Court ruling that struck down affirmative action in college admissions. It has been reported that Columbia and Brown University both agreed to release similar data in their own settlements, while Harvard has resisted, describing the request as a breach of institutional privacy. May Mailman, the White House adviser leading the negotiations, suggested in a recent interview that Harvard’s “inclination to provide data surrounding its consideration of race in admissions would be a factor in the government’s willingness to sign off on a deal,” per reports.

Harvard’s faculty and students divided

Critics have warned that it could set a precedent for political interference in higher education and question whether the administration would uphold its terms. Supporters contend a settlement is necessary to restore research funding and stabilize the university’s finances. Harvard negotiators want the deal to be legally binding to limit the ability of future administrations to alter it. Nobel laureate and economics professor Oliver Hart underscored the need for clear safeguards. “I would spell out what happens if a party feels the agreement is not being honored. If they have so many things up their sleeve, they’re going to have those things up their sleeve once you’ve agreed on a deal,” he said. Some inside the university have argued that even if Harvard prevails in court, “the administration could continue to pelt the school with investigations and subpoenas while, over time, bleeding it of research funding through more standard protocols. To them, a settlement was an unappealing but essential outcome.”

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