Lutnick: Trump Wants Harvard to Build Vocational School as Part of Settlement

While President Trump has proposed slashing the federal workforce development budget, a potential settlement between Harvard University and the Trump administration could involve the a plan to use $500 million the government is demanding to build vocational schools, Bloomberg reported Thursday. 

Harvard is one of nine universities the Trump administration has targeted with federal funding freezes. In April, the government froze $2.2 billion in federal grants after the university rejected its demands to overhaul its policies on admissions, governance, hiring and more. In July, Harvard, which also sued the Trump administration over the freeze, was reported as open to paying as much as $500 million to settle with the Trump administration, though leaders said they would be reluctant to pay the government directly. 

While no deal with Harvard has materialized yet, Commerce Secretary Howard Lutnick told CNBC on Thursday that if one does, the $500 million could go toward vocational education. 

“If Harvard settles with Donald Trump, you know what he’s going to do with the $500 million?” Lutnick said. “He’s going to have Harvard build vocational schools. The Harvard vocational school, because that’s what America needs.” 

But deal or no deal, the frozen funds may start flowing back to Harvard soon.

Last week, a federal judge ruled that the Trump administration illegally froze Harvard’s federal money, but the government plans to appeal. Earlier this week, The New York Times reported that Harvard researchers were told some grants were being restored, though it’s not clear how widespread those restorations were.