Northwestern Pays $75M in Deal with Trump Admin to Regain Federal Funds/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Northwestern University will pay $75 million to the federal government to resolve antisemitism-related investigations and regain access to nearly $800 million in federal research funds. The agreement also requires policy changes, including revoking a prior deal with campus protesters. The Trump administration continues leveraging federal grants to enforce reforms in elite universities.
Northwestern Federal Funding Restored: Quick Looks
- Northwestern agrees to pay $75 million over three years to settle federal investigations.
- Deal restores access to $790 million in previously frozen federal research grants.
- Trump administration accused the school of failing to address antisemitism.
- University must revoke April 2024 Deering Meadow agreement with pro-Palestinian protesters.
- Interim president Henry Bienen asserts university retained control over admissions, hiring, curriculum.
- Agreement enforces Title IX protections and single-sex housing for women.
- Trump uses federal grant leverage to challenge “woke” university ideologies.
- Education Secretary Linda McMahon praises reforms as a national model.
- Northwestern’s fine is second only to Columbia’s $200 million settlement.
- Harvard remains in ongoing legal battle over federal funding cuts.
Deep Look: Northwestern University Pays $75M in Trump-Era Deal to Regain $790M in Federal Funding
WASHINGTON (AP) – In a high-stakes agreement with the Trump administration, Northwestern University has agreed to pay $75 million to the U.S. Treasury to resolve federal investigations and regain access to nearly $790 million in frozen research grants. The deal, announced Friday night, marks another significant win for the administration in its campaign to reshape American higher education through financial leverage.
The settlement follows months of scrutiny after the federal government accused Northwestern of failing to sufficiently combat antisemitism on its campus. That allegation became a central justification for the dramatic suspension of federal research funding earlier this year.
Fallout and Resignations
The funding freeze led to deep consequences for the university. Faculty and administrative layoffs ensued, and in September, then-president Michael Schill resigned under pressure. The university has since been led by interim president Henry Bienen, a former president of the institution.
What the Agreement Includes
Under the three-year agreement, Northwestern will:
- Pay $75 million to the U.S. government.
- Revoke the Deering Meadow agreement, a deal struck in April 2024 to end a pro-Palestinian protest encampment on campus.
- Comply with federal anti-discrimination statutes, including expanded Title IX policies.
- Implement cultural orientation training for international students to promote norms of civil discourse and academic freedom.
- Provide single-sex housing, facilities, and sports programs for women, defined by biological sex, upon request.
Importantly, Bienen emphasized that the university did not yield control over key academic areas such as admissions, curriculum, or hiring. “I would not have signed this agreement without provisions ensuring that is the case,” he stated.
Federal Endorsement of Reforms
Education Secretary Linda McMahon framed the agreement as a turning point in higher education governance. “The reforms reflect bold leadership at Northwestern,” she said, adding that the settlement should serve as a “roadmap for institutional leaders” nationwide. McMahon underscored the administration’s goal to rebuild trust in universities seen as losing their ideological balance.
The administration has taken an increasingly aggressive stance toward elite academic institutions, using federal grant money to push changes in university policies related to antisemitism, free speech, and campus governance.
Deering Meadow Agreement Targeted
One of the Trump administration’s primary demands was the revocation of the Deering Meadow agreement, which Northwestern signed in spring 2024. That agreement ended a pro-Palestinian student encampment in exchange for certain university commitments. Critics said the arrangement violated the principles of neutrality in academic institutions. Its cancellation was a non-negotiable condition in federal negotiations.
Trump’s Higher Ed Agenda
President Trump has made universities a frequent target in his second term, claiming many elite institutions have been overrun by what he calls “woke” ideology. By controlling access to billions in federal research funds, his administration has been able to impose pressure for cultural and administrative reforms.
This includes offering preferential access to funding for institutions that adopt the administration’s guidelines—an initiative referred to as Trump’s “higher education compact.” While some schools have accepted these terms, others have rejected them over concerns about threats to academic freedom.
Larger Trend Among Ivy League Schools
Northwestern is not alone in being investigated or penalized. Several Ivy League institutions have reached similar settlements:
- Columbia University paid a record $200 million to restore federal funds in July.
- Brown and Cornell also agreed to settlements, though the amounts were not disclosed.
- Harvard University, which has become the primary target of the administration’s education overhaul, remains locked in negotiations.
Harvard sued the federal government after its grant money was frozen and won a temporary legal victory in September, when a judge ordered the funding restored. The court found that the administration “used antisemitism as a smokescreen” to force broader institutional change.
Reactions and Implications
Supporters of the Trump administration’s stance argue that universities must be held accountable for discriminatory environments and lack of ideological diversity. Detractors, however, see the actions as an assault on academic independence, motivated more by politics than by policy.
For Northwestern, the settlement may help restore financial stability and research continuity. However, the reputational damage and political scrutiny will likely have lasting effects on how it navigates future campus controversies.
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