U.S. President Donald Trump signaled a willingness on Wednesday to settle for $500 million a legal fight with Harvard University over $2.5 billion in funding his administration canceled over accusations it allowed antisemitism and promoted diversity policies.

The White House views a payment of $500 million by Harvard University as a floor in negotiations for a settlement, and the cost of a deal could climb far higher if the school doesn’t submit to government oversight provisions,

A t Harvard you can study negotiation. This being Harvard, there is in fact an entire academic programme dedicated to the craft. The principles are simple. Understand your alternatives—what happens if you fight rather than compromise—and your long-term interests.

The Trump administration said Harvard University is still refusing to obey federal civil rights law, increasing pressure over the school’s alleged failure to address antisemitic harassment on campus since Israel’s response to the 2023 attack by Hamas prompted pro-Palestine student protests.

The Justice Department could launch legal proceedings against Harvard over its civil rights violations, a federal official told president Alan Garber on Wednesday.