Newsom Vows to Cut Funds for California Universities Complying with Trump-Era Education Compact

California Governor Gavin Newsom announced Thursday that the state would withhold funding from any California universities that agree to the Trump administration’s ‘Compact for Academic Excellence in Higher Education.’ This agreement offers federal funding benefits to colleges willing to implement policy changes aligned with former President Donald Trump’s education agenda.

The compact, reportedly sent to several top public and private U.S. institutions, mandates a five-year tuition freeze, caps on international student enrollment, and ‘strict definitions of gender.’ It also demands universities eliminate grade inflation, reinstate SAT requirements, and prohibit the use of race and sex in hiring and admissions. Furthermore, the compact calls for the removal of departments deemed to ‘purposefully punish, belittle, and even spark violence against conservative ideas.’

Newsom vehemently condemned the compact as ‘nothing short of a hostile takeover of America’s universities,’ criticizing its dictation of how schools spend their endowments. He specifically threatened to cut state funding, including crucial Cal Grants for California residents, from institutions that ‘SELL OUT THEIR STUDENTS, PROFESSORS, RESEARCHERS, AND SURRENDER ACADEMIC FREEDOM.’

Among the universities reportedly receiving the compact were USC, the University of Arizona, Brown, Dartmouth, MIT, University of Pennsylvania, University of Texas, Vanderbilt, and University of Virginia. While USC, as a private institution, does not receive state funding in the same manner as public universities, its California students rely on Cal Grants, which can provide up to $11,000 annually. USC received $1.35 billion in federal funding in the 2024 fiscal year.

This move by the Trump administration follows a period of heightened scrutiny on universities, particularly in the wake of pro-Palestinian protests last year. The Department of Education had launched investigations into numerous schools over antisemitism allegations, with federal funding often targeted. The administration previously reached multimillion-dollar settlements with institutions like Columbia University and Brown, which agreed to various demands. Former President Trump recently claimed Harvard would settle disputes for $500 million, weeks after the university sued over a $2.6 billion funding freeze and a proposed ban on international student enrollment.

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