Donald Trump’s Ivy League accords may fund US trade schools
President Donald Trump’s campaign to extract billions from Harvard University and other elite colleges appears poised to generate a significant boost for US trade schools. According to Howard Lutnick, Trump is urging Harvard to establish one of its own as part of a deal to reinstate frozen federal funding. “The Harvard Vocational School,” Lutnick stated on Thursday. “That’s what America needs.” The latest outing for an idea that has gained traction in recent weeks. Several US colleges are negotiating financial agreements with the White House to address allegations of political bias and restore access to essential research grants. Many hesitate to pay fines directly. Investment in career and technical training — a priority for Trump, who aims to revive US manufacturing — appears to be a compromise both sides can accept.
Brown University will allocate $50 million over the next decade for workforce training in Rhode Island as part of a settlement. The college will allocate the funds as grants to current vocational programs and organizations. School administrators are currently determining their process and expect to finalize it “in the coming weeks,” according to Brian Clark. Amy Grzybowski describes the Brown settlement as “an amazing opportunity” for institutions like hers. She serves as the vice president of workforce development and community relations at the New England Institute of Technology, a nonprofit private college located in East Greenwich, Rhode Island, which collaborates with local employers to shape its curriculum. Welding and shipfitting programs were established in collaboration with General Dynamics Electric Boat, the manufacturer of Navy-class submarines in the state. “We have reached out to express interest” in the Brown grants, Grzybowski stated. “Along with, I’m sure, everybody in Rhode Island.” The Community College of Rhode Island, a major vocational training provider in the state, views Brown’s investment pledge as a chance for collaboration. “We look forward to exploring ways we might work together in support of Rhode Island’s students, workers, and economy,” said Amy Kempe.
Harvard has not reached this stage, and discussions regarding a settlement have stalled in recent weeks. The college has indicated its willingness to invest $500 million in workforce programs as part of a potential agreement to reinstate over $2 billion in research grants. Lutnick’s proposal for a vocational school bearing Harvard’s name raises the possibility of Ivy League-trained plumbers and electricians – a notion that may not be as implausible as it appears. Princeton University operates an apprenticeship program, partially supported by the Department of Energy, providing training in over a dozen fields such as welding and cybersecurity. Earlier this year, Harvard announced a Careers in Construction program offering training and apprenticeships in the Boston area. Alisha Hyslop, stated, “I could envision Harvard’s graduate schools partnering with apprenticeship programs or offering short-term, skills-based credentials. There has been a rise in four-year universities embedding industry certifications in their programs, especially in technology, AI, and coding,” she stated. “Harvard could easily get involved.”
Workforce investments were absent from the administration’s settlement with Columbia University, indicating that these are not the sole avenues to reach an agreement. With numerous schools poised to pursue agreements, the concept clearly resonates with Trump. In April, the president signed an executive order to “refocus young Americans on career preparation.” He has promoted vocational programs as a cultural and economic alternative to elite universities. However, he appears reluctant to finance them using federal funds. Trump has suggested cutting the Labor Department’s $200 million yearly budget that supports adult education at community colleges, a significant portion of which finances vocational and skills-based programs. The department has also suspended its Job Corps program, resulting in the closure of 99 career training centers across the country. The president has openly expressed a desire for elite colleges to cover the costs. In May, he stated on Truth Social that he was contemplating cutting $3 billion in funding from Harvard to allocate it to trade schools. According to Kathleen deLaski, it’s “the Robin Hood approach.”
DeLaski stated that she and her team had previously proposed a similar initiative over a decade ago, named “Share the Wealth,” which failed to gain significant traction with Harvard and its counterparts. She opposes the Trump administration’s attack on Harvard. “If they are going to extract a pound of flesh from wealthy colleges, I’d rather have it earmarked for less-resourced parts of higher ed than be a tax going back to the national coffers,” she said. ‘Extorting Money.’ Trump is not the first president to attempt to enhance technical education and address labor force shortages. Joe Biden prioritized it as well. Supply chain disruptions during the pandemic and trade tensions with China have led Washington to conclude that key industries must be relocated domestically – and skilled workers will be essential. Some analysts argue that, due to its economic significance, the government ought to provide funding and make crucial decisions. “I don’t think extorting money from Ivy League institutions is any way to finance workforce development,” stated Braden Goetz. “If it’s publicly funded, taxpayers and policymakers have a say in how it’s used.” “If we’re relying on Harvard or Brown to decide how to spend it, it may not be in the best interest of the people.”
“Wherever the money ultimately comes from, a shift toward vocational funding and away from the traditional college model is what the US economy needs,” according to Nick Moore, as deputy assistant secretary at the Education Department’s Office of Career. Moore, stated that he sees a possible redistribution of wealth from his university to vocational programs not as a punishment, but rather as a corrective measure. He anticipates observing comparable changes throughout the sector. “Our current workforce system is not sufficient to meet our economic trajectory,” he stated. “And there is probably no industry that is more removed from market dynamics than higher education.”
Ramesh Sridharan
Ramesh Sridharan is our Stock Market Correspondent covering events and daily movements of stock markets in Asia. He is based in Mumbai









