U.S. President Donald Trump signaled a willingness on Wednesday to settle for $500 million a legal fight with Harvard University over $2.5 billion in funding his administration canceled over accusations it allowed antisemitism and promoted diversity policies.

The White House views a payment of $500 million by Harvard University as a floor in negotiations for a settlement, and the cost of a deal could climb far higher if the school doesn’t submit to government oversight provisions,

Harvard President Alan M. Garber ’76 has told faculty that a deal with the Trump administration is not imminent and denied that the University is considering a $500 million settlement, according to three faculty members familiar with the conversation.