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Why Harvard is now willing to negotiate with Trump after months of legal and financial warfare

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After months of fierce legal battles and deep financial strain, Harvard University has reopened negotiations with the Trump administration, signaling a potential turning point in one of the most high-profile confrontations between a US president and an academic institution. The renewed talks mark a sharp departure from Harvard's earlier posture, when it publicly resisted what it described as overreach and political interference by the federal government.

The discussions resumed during a recent meeting at the White House, where Harvard representatives presented a PowerPoint outlining steps the university has taken to address concerns around antisemitism, viewpoint diversity, and admissions practices. In return, the White House issued a letter proposing specific actions Harvard must undertake for a resolution, as reported by the New York Times. Though the university has yet to respond formally, sources cited by the New York Times described the White House's tone as serious and the talks as active.

A shift driven by mounting financial and legal pressure
Harvard's decision to return to the negotiating table appears to be motivated by the growing toll of its standoff with the administration. The Trump government has already stripped billions in federal research funding from the university and launched a series of legal actions, including efforts to bar international students, who make up about a quarter of Harvard's student body. It also initiated an investigation under the False Claims Act and threatened the school's tax-exempt status, as detailed by the New York Times.

Harvard officials, while publicly defiant, have been privately reassessing the university's future under continued federal pressure. According to the New York Times, university leaders now believe that prolonged conflict could make Harvard "far smaller and less ambitious." Despite having a $53 billion endowment, much of that capital is restricted, making the institution more financially vulnerable than it appears.

Talks follow broader discontent and political signaling
The university reportedly sought to reengage after Secretary of Education Linda McMahon raised the prospect of negotiations and after other university leaders encouraged Harvard to represent academia in dialogue with Washington. The Trump administration, according to the New York Times, hopes that a deal with Harvard could become a model for similar arrangements with other elite institutions.

While the White House has targeted other universities, the fight with Harvard has been the most contentious. At one point, the administration demanded sweeping changes, including merit-based hiring and admissions, curbs on faculty influence, external reviews of diversity-related departments, and reporting obligations through 2028.

Trump signals optimism while scrutiny looms
President Trump hinted at an impending breakthrough on Truth Social, calling the prospective deal "mindbogglingly historic," and adding it would be "very good for our Country," as quoted by the New York Times. However, sources cautioned that a deal remains unlikely within the next week.

As talks progress, both sides face scrutiny. Students, faculty, and alumni are expected to examine any agreement closely. "It would be a tragedy if Harvard resolved this in a way that gave support and encouragement to the idea of extralegal extortion," said former Harvard president Lawrence H. Summers, as quoted by the New York Times.
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