Trump demands $500 Million settlement from Harvard University to restore Federal Funding

US President, Donald Trump has called for Harvard University to pay a $500 million settlement before the government restores its federal funding, accusing the Ivy League institution of misconduct.

“We want nothing less than $500 million from Harvard. Don’t negotiate, Linda,” Trump told Education Secretary Linda McMahon during a Cabinet meeting on Tuesday, August 26..

He doubled down moments later, saying, “They’ve been very bad. Don’t negotiate.”
 

The move comes amid escalating tensions between the White House and elite academic institutions. Harvard is currently locked in a legal battle with the administration over allegations of antisemitism on campus, a dispute that has intensified since the Israel-Hamas war reignited fierce debates over academic freedom and political speech.
 

Harvard is the only university to challenge the federal government in court directly, making it the epicenter of a broader clash over higher education funding and oversight.
 

Inside the Trump administration, officials reportedly believe that targeting elite universities resonates with a political base frustrated by what they view as liberal dominance in academia.
 

A federal judge is expected to issue a ruling in Harvard’s funding case soon. The university had requested an expedited decision from US District Judge Allison Burroughs before September 3 — the date it says it must submit key grant paperwork to avoid disruptions to research programs.

The administration has already struck agreements with Columbia and Brown Universities, leaving Harvard as the most high-profile holdout in this unprecedented standoff.