Trump Threatens Higher Ed With Funding Freezes and Investigations
NEWS & RESEARCH
In October 2025, the Trump administration invited several universities – including Brown, Dartmouth, and MIT – to sign its “Compact for Academic Excellence in Higher Education.” By signing the Compact, schools would agree to adopt the Trump administration’s recommendations on diversity policies in admissions and hiring and transgender rights. Those that refused to sign the Compact would “forego federal benefits.” In July 2025, the Justice Department announced that it was suspending grant funds to UCLA on the grounds that the university had failed to adequately respond to complaints of harassment and abuse that Jewish and Israeli students allegedly faced on its campus “from October 7, 2023, to the present.” As a result, the DOJ froze nearly $400 million of UCLA’s federal funding. However, a December 2025 ProPublica investigation reported that several career DOJ attorneys believed that there was little evidence to support the investigation.
SOURCES: CalMatters | American Council on Education| New York Times | ProPublica
ANALYSIS & OPINION
While Congress may withhold money from colleges and universities that do not comply with federal law, the president cannot. As legal scholar Erwin Chemerinsky said in the New York Times, “President Trump is trying to circumvent the legislative and judicial branches of our government by presenting this as a deal with schools. Nothing in the Constitution or federal law authorizes the president to do this unilaterally.” In some cases, such as with the gender identity language, the Compact goes against current Supreme Court guidance. As such, complying schools may face civil rights lawsuits.
SOURCES: Roll Call | Los Angeles Times | Cato Institute | Inside Higher Ed | Center for American Progress | Knight Institute
HOW TO FIX IT
Federal action:
Pass the NOPE (No Political Enemies) Act, which protects faith groups, media outlets, educational institutions, and more from politically motivated interference and harassment by the federal government.
Demand Congressional hearings into whether the Trump administration has used the threat of an investigation or funding freeze to pressure universities into adopting its policy preferences.
Demand enforcement of Section 103 of the Higher Education Act (20 U.S.C. § 1232a). This law restricts federal involvement in curriculum and management of colleges and universities.
Demand transparency for any settlements between universities and the federal government, especially any personnel changes or disciplinary actions.
State action:
Tell state boards of regents and trustees to reject any new Compact agreements.
Pressure state legislators to reject attempts to adopt the Compact for their state systems.
Litigation:
President and Fellows of Harvard College v. U.S. Department of Health and Human Services. In this case, Harvard sued when the Trump administration froze its federal funding after the university refused to accept limitations on student activism. The federal district court ruled in favor of Harvard, noting that the administration used the wrong procedures and also failed to show any connection between the funding freeze and combating antisemitism. The administration appealed.
United States of America v. Regents of the University Of California. In May 2026, the Department of Justice moved beyond funding freezes by filing a lawsuit against UCLA on the same grounds.
Legislation: H.R.8220 - NOPE Act
