Trump says Harvard to run 'giant series of trade schools': 'Then their sins are forgiven'

President Donald Trump on Tuesday said his administration is closing in on a deal with Harvard University that would require the Ivy League university to pay $500 million towards opening and operating trade schools focusing on artificial intelligence.

Trump took questions from reporters during a news conference in the Oval Office on Tuesday after signing an executive order concerning the use of AI in pediatric cancer cases. He was asked about the latest negotiations between the White House and Harvard regarding accessing federal grant funding. The Trump administration moved to withhold federal funding to the university earlier this year because of Harvard's campus antisemitism policies, a move that multiple federal judges have ruled was illegal.

On Monday, the Wall Street Journal reported that the White House was considering referring Harvard for "debarment" proceedings, which would disqualify the university from receiving federal funding.

"We're in the process, and we're getting very close," Trump said. "Linda [McMahon] is finishing up the final details. They'd be paying about $500 million, and they'll be operating trade schools. They're going to be teaching people how to do AI and lots of other things. Engines. Lots of things."

Trump has previously said he wants Harvard to pay a $500 million fine to restore more than $2.2 billion in funding that was previously approved but never paid.

"This would be a giant series of trade schools that would be operated by Harvard," Trump said of his plan. "We're very close to that. Finalizing. Haven't done it yet. But they would put up $500 million, and interest and everything from that account would go to the trade school. It's a big investment, done by very smart people. And then their sins are forgiven."