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President Donald Trump said Tuesday that his administration has struck an agreement with Harvard University that will direct $500 million toward creating a nationwide network of trade schools focused on artificial intelligence, engineering and other technical fields.
“I guess we reached a deal with Harvard today, so we’ll see how that — all you have to do is paper it, right, Linda?” the president told Education Secretary Linda McMahon during an executive order signing in the Oval Office.
“Yes, sir,” McMahon replied.
The initiative, which is still being finalized, would have Harvard finance and operate the schools, a move that Trump described as a major step in revitalizing vocational education. He said the investment would “forgive their sins,” a likely reference to recent controversies surrounding the university.
“We used to have a lot of trade schools in this country,” Trump said. “We don’t anymore.”
The president argued that students who pursue hands-on skills often “ended up doing better” than peers with stronger academic records. He said the new programs will help prepare workers for jobs in expanding sectors, particularly in automotive and AI-driven manufacturing.
“It’s a big investment in trade schools done by very smart people,” Trump said, adding that the effort would also support companies relocating operations to the U.S. to avoid tariffs.
President Trump escalated his ongoing standoff with Harvard University in August, telling McMahon to demand a $500 million payout from the Ivy League institution as part of settlement talks with the federal government.
“We want nothing less than $500 million from Harvard. Don’t negotiate, Linda. They’ve been very bad,” Trump said during a Cabinet meeting, according to remarks released by the White House.
The push came as the administration and Harvard have been working toward a potential agreement that would allow the school to regain access to billions in blocked federal research funding. The dispute centers on government investigations into admissions practices and campus antisemitism.
Harvard has resisted direct payments to the federal government. Instead, the school has proposed investing $500 million into vocational and educational programs and research initiatives. In exchange, the Trump administration would restore research funding, drop ongoing investigations and stop enforcing restrictions on international student enrollment.
