Washington: US President Donald Trump announced on Wednesday that Harvard University is keen on reaching a settlement regarding the ongoing funding dispute with the federal government. The discussions are reportedly centered on a substantial $500 million payment, as Trump informed reporters at the White House.

According to Anadolu Agency, The New York Times revealed on Monday that Harvard has shown a willingness to comply with the administration's financial demands to resolve the conflict, as indicated by sources familiar with the ongoing negotiations. The report highlighted that Harvard is exploring alternative payment structures rather than making direct payments to the federal government.

Sources also disclosed that the financial expectations set by Trump for Harvard are significantly higher compared to the settlement reached with Columbia University. Despite the ongoing discussions, Harvard has not publicly confirmed any settlement plans.

The conflict originated from the Trump administration's decision to withdraw more than $2.6 billion in federal funding from Harvard, citing allegations of antisemitism and national security concerns. A federal judge recently expressed constitutional concerns over the funding cut, describing some government arguments as "mind boggling."

The US administration further escalated matters by revoking Harvard's Student and Exchange Visitor Program certification in May, accusing the institution of violating federal civil rights laws for not adequately addressing harassment against Jewish and Israeli students during Gaza-related protests. Additionally, administrative subpoenas were issued to obtain records on foreign students following Harvard's refusal to comply with previous requests.

In a comment on the situation, Trump expressed preference for Columbia University's handling of its resolution but noted that Harvard appears eager to settle the dispute.