US President Donald Trump said on Tuesday that his administration had reached a deal with Harvard University after months of negotiations and that the school will pay US$500 million.

“Linda is finishing up the final details,” Trump told reporters at an event in the Oval Office, referring to Education Secretary Linda McMahon.

“And they’ll be paying about US$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.”

Harvard had no immediate comment on Trump’s remarks.

The Trump administration has threatened schools, universities and colleges with the withholding of federal funds over issues including pro-Palestinian protests against US ally Israel’s war in Gaza, climate initiatives, transgender policies, and diversity, equity and inclusion practices.

Rights advocates have raised free speech, privacy and academic freedom concerns over the Trump administration’s probes into universities.