Trump Threatens to Redirect $3 Billion in Harvard Funds to Vocational Schools

US President Donald Trump threatens to redirect $3 billion in Harvard University funding to vocational schools, citing "antisemitism" and a failure to address it. The administration has already frozen funds and blocked international student enrollment, due to concerns about campus freedom of speech and academic mission. Harvard has been targeted by Trump's campaign, with over $2.6 billion in federal research funding suspended. The university has filed a lawsuit and obtained a temporary restraining order to block the government's efforts to block international student enrollment.

In a recent development, US President Donald Trump has threatened to redirect $3 billion in federal grants from Harvard University to vocational schools, citing concerns about antisemitism and the university's failure to address these issues. This move is part of a broader conflict between the Trump administration and Harvard, which has seen the university face several challenges from the administration.

The conflict began in late March when the Trump administration accused Harvard of promoting "divisive ideologies over free inquiries" and failing to protect Jewish students during Gaza war protests on campus. In response, the administration announced a review of $8.9 billion in federal grants and contracts. Two weeks later, Harvard rejected the administration's demands, leading to the suspension of $2 billion in federal grants and $60 million in contracts [1].

On Monday, President Trump announced that he is considering taking the frozen grant money away from Harvard and giving it to trade schools across the country. He described this transfer as a "great investment" that is "badly needed," citing rising enrollment in trade schools and technical training programs [1].

Harvard has been vocal in its opposition to the administration's actions. The university has filed multiple lawsuits against the government, including one to reverse the freeze on federal grants and another to challenge the revocation of its ability to enroll international students. The latter lawsuit argues that the government's actions are a "blatant violation of the First Amendment" and that the revocation affects more than 7,000 visa holders [2].

The ongoing legal battle has seen Harvard obtain a temporary restraining order to block the government's efforts to block international student enrollment. The university's international student population, which includes over 6,700 students from over 100 countries, has been significantly impacted by these actions [2].

The conflict between the Trump administration and Harvard has significant implications for higher education and federal funding. As the legal battle continues, investors and financial professionals should closely monitor the developments, as they could impact the university's financial stability and the broader education sector.

References:
[1] https://www.businessinsider.com/trump-harvard-funding-trade-schools-grants-lawsuits-2025-5
[2] https://www.collegenews.com/article/harvard-sue-trump-administration-over-ban-on-international-student-enrollment/