Trump announces Harvard to run trade schools under grant deal, says 'their sins are forgiven'

WASHINGTON, DC: President Donald Trump announced a tentative grant deal with Harvard University on September 30, to restore $2.6 billion in frozen federal grants, but it comes with a major twist.

Harvard has agreed to invest $500 million in launching and running trade schools focused on high-demand fields, such as artificial intelligence and engineering.

The agreement seeks to resolve a months-long standoff over the university’s handling of antisemitism and race-based admissions policies, which prompted the funding freeze.

Donald Trump says Harvard will run new trade schools

President Trump said Harvard University will invest $500 million to build and operate a network of trade schools, marking the end of a standoff with his administration.

The deal comes after months of tension over Harvard’s handling of antisemitism and its use of race-based affirmative action, both of which led to the freezing of $2.6 billion in federal grants.

“This would be a giant trade school, or series of trade schools. It would be run by Harvard,” Trump told reporters in the Oval Office. “Now, this is something that we’re close to finalizing. 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."

Donald Trump confirms Harvard deal with Linda McMahon

Trump revealed the deal casually during an unrelated event on childhood cancer.

“I guess we reached a deal with Harvard today,” he said, turning to Education Secretary Linda McMahon and asking, “All you have to do is paper it, right Linda?” McMahon agreed.

Trump had previously directed McMahon to secure $500 million from Harvard, following a $200 million fine imposed on Columbia University for similar civil rights issues.

The administration froze funding to both schools for what it described as failing to take sufficient action against antisemitism in the wake of the October 7, 2023 Hamas attack and Israel’s subsequent military response in Gaza.

Donald Trump outlines new trade school plan

Speaking about the new trade school plan, Trump said it would prepare students for high-demand jobs in fields like AI, engineering, and manufacturing.

“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,” he said, recalling classmates who weren’t academic standouts but excelled in hands-on skills, and often went on to outperform others.

"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,” he added.

For months, Harvard stood alone among top universities by refusing to comply with the administration’s demands, until now.