ISLAMABAD: United States (US) President Donald Trump said Tuesday his administration was close to reaching a $500 million financial settlement with Harvard under which the elite academic institution would operate trade schools, AFP reported.

The comments mark the latest twist in Trump's unprecedented crackdown on Harvard over claims of anti-Semitism and bias -- claims the university denies, saying that the federal government is actually focused on controlling its hiring, admissions and curriculum.

Harvard President Alan Garber, back in April, categorically stated that “No government—regardless of which party is in power—should dictate what private universities can teach, whom they can admit and hire, and which areas of study and inquiry they can pursue.”

"Well, we're in the process of getting very close," Trump said at the White House on Tuesday regarding the settlement, according to AFP. "They'd be paying about $500 million and they'll be operating trade schools.

‘Sins are forgiven’

"They're going to be teaching people how to do AI and lots of other things, engines, lots of things," Trump said. "You know, it's a big investment in trade school done by very smart people, and then their sins are forgiven."

Harvard did not immediately respond when asked about Trump's comments.

Trump officials have accused Harvard and other schools of promoting so-called "woke" ideology while failing to sufficiently protect its Jewish students during protests against Israel’s war on Gaza.

‘Antisemitism as a smokescreen’

In early September, a Boston judge ordered the administration to lift its freeze on approximately $2.6 billion in federal funds for Harvard, writing that Trump's Department of Education "used antisemitism as a smokescreen for a targeted, ideologically motivated assault on this country's premier universities."

Two weeks later, the administration imposed fresh restrictions on Harvard's access to government money, requiring the university to use its own funds to pay out student financial aid packages that federal officials have promised.

Other varsities

In July, Columbia University agreed to pay 200 million dollars to the administration and pledged to obey rules that bar it from taking race into consideration in admissions or hiring.

The University of Pennsylvania, another Ivy League institution, also bowed to Trump administration concerns, announcing it would ban transgender women from participating in women's sports, AFP reported.

Anti-War Protests

Harvard to run 'trade schools' under upcoming deal: Trump