In April, the Department of Education sent a letter to Harvard University which warned that the institution would face consequences if it did not end DEI initiatives and crackdown on antisemitic harassment.

While Harvard initially scoffed at the Trump administration's ultimatum, a new report suggests that it is now prepared to back down. 

Possible deal could involve Harvard spending $500 million

In an article published on Monday, The New York Times cited four sources said to be familiar with the matter who indicated that Harvard may be willing to spend as much as $500 million to comply with the White House's demands.

The Times pointed out how this figure is more than double the $200 million fine which Columbia University agreed to pay as part of an agreement to restore government funding.

Harvard Is Said to Be Open to Spending Up To $500 Million to Resolve Trump Dispute https://t.co/km39fO4KKw via @NYTimes

— Catherine Lucey (@catherine_lucey) July 28, 2025

The potential deal may include a settlement in the lawsuit which Harvard filed after the Trump administration froze $2.6 billion worth of grants.

Secretary accused Harvard of "promoting divisive ideologies over free inquiry"

The Daily Caller recalled how in March, Secretary of Education Linda Linda McMahon announced that Harvard's grants were coming under review.

"Harvard has served as a symbol of the American Dream for generations – the pinnacle aspiration for students all over the world to work hard and earn admission to the storied institution," McMahon acknowledged.

"Harvard’s failure to protect students on campus from anti-Semitic discrimination – all while promoting divisive ideologies over free inquiry – has put its reputation in serious jeopardy," she complained.

"Harvard can right these wrongs and restore itself to a campus dedicated to academic excellence and truth-seeking, where all students feel safe on its campus," the secretary went on to add.

White House: "Don’t allow antisemitism and DEI to run your campus"

Harrison Fields serves as principal deputy press secretary for the White House, and provided a statement to the Daily Caller explaining that Harvard faces a clear choice.

"The Trump Administration’s proposition is simple and commonsense: Don’t allow antisemitism and DEI to run your campus, don’t break the law, and protect the civil liberties of all students," he asserted.

"We are confident that Harvard will eventually come around and support the President’s vision, and through good-faith conversations and negotiations, a good deal is more than possible," Fields declared.

The Daily Caller noted how in September of last year, congressional investigation found that Harvard failed to punish nearly 70 students who were involved in illegal anti-Israel protests.