“They’re going to be teaching people how to do [artificial intelligence] and lots of other things, engines, lots of things. You know, we need people in trade schools,” the president continued.

The Trump administration has feuded with Harvard over allegations of antisemitism and attempted to strip the elite university of federal funding.

The latest flare-up occurred on Monday, when the Department of Health and Human Services’ Office for Civil Rights recommended that Harvard be suspended and debarred, following up on a June notice that the university was indifferent to antisemitism on its campus. Harvard now has 20 days to inform the office whether it will exercise its right to a hearing.

Earlier this month, a federal judge ordered that $2.2 billion in frozen university funding be returned. U.S. District Judge Allison Burroughs claimed that freezing the funding violated constitutional free speech protections and federal law. 

The Trump administration froze the funding in April and issued guidelines that Harvard and other higher education institutions must meet before regaining it.

But it now appears that the Trump administration and Harvard could end their feud if a deal is struck soon, with Harvard launching trade schools, according to Trump.

“By opening up trade school, this would be a giant trade school, series of trade schools. It would be run by Harvard. Now, this is something that we’re close to finalizing. We haven’t done it yet,” Trump teased.

JUDGE BLOCKS TRUMP’S $2.2 BILLION HARVARD FUNDING FREEZE

“But they put up $500 million interest and everything else would go to that account, meaning go to the trade school,” he continued. “And, you know, it’s a big investment in trade school, done by very smart people, and then their sins are forgiven. So we have a good chance of getting that close.”

The Washington Examiner reached out to Harvard and the Education Department for comment.