Newsom Vows to Counter Trump‘s University Compact with state Funding Cuts
California Governor Gavin Newsom has threatened to withhold state funding from any public university within the state that signs onto a proposed “compact” with former president Donald Trump’s administration. The compact, outlined in a document circulating among universities, aims to reshape higher education through stipulations on tuition, free speech, and program offerings, and is being presented with the implicit leverage of federal funding.
the Trump administration is actively seeking commitments from universities, offering benefits – including continued access to federal funds – in exchange for adherence to the compact’s terms.These terms include capping tuition for U.S. students for five years, eliminating tuition for “hard science” programs at wealthier institutions, and a commitment to fostering a broader range of viewpoints on campus, specifically targeting what the document describes as the suppression of conservative ideas. The compact would also require annual polling to assess campus adherence and enforcement by the Justice Department, with penalties including loss of compact benefits for institutions found in violation.
Newsom’s stance comes as the administration has demonstrated a willingness to use federal funding as leverage, previously cutting off research money to institutions like UCLA, Harvard, and Columbia while seeking policy changes. While a federal judge recently ordered the restoration of much of the suspended research funding at UCLA,the threat of financial repercussions remains a key component of the administration’s strategy.
The situation is particularly sensitive for the University of Southern California (USC), which is already navigating a significant financial crisis. USC is facing a budget deficit exceeding $200 million, leading to over 600 layoffs and cost-cutting measures. interim President Beong-Soo Kim acknowledged federal funding challenges as contributing to the university’s financial strain.
USC’s leadership has maintained a low profile regarding the president’s higher education agenda. Former USC President Carol Folt publicly declined to sign a statement in April, joined by over 220 other university leaders, condemning “undue government intrusion” into campus life. Furthermore, USC responded to Department of Education guidance opposing race-based scholarships by closing its diversity offices and renaming related websites, a move taken by few other California universities.
University of California leaders are currently engaged in negotiations with the Department of Justice regarding federal demands.Trump has stated he is “close to finalizing” a deal with Harvard, potentially involving a $500 million contribution from the university towards a “giant trade school.”
Newsom’s threat to cut state funding represents a direct challenge to the Trump administration’s efforts,signaling California’s intention to protect its universities from what it views as undue federal interference and a potentially politically motivated compact. The administration explicitly states that institutions are free to reject the compact, but at the cost of foregoing its associated federal benefits.
