The Trump administration is offering federal funding as a carrot for colleges and universities, but there’s a catch. Schools must agree to follow a 10-point set of principles laid out in a new memo.
In California, however, Gov. Gavin Newsom, D, pushed back against the plan, saying universities in the state would risk losing billions, instantly, in state funding if they signed on.
“CALIFORNIA WILL NOT BANKROLL SCHOOLS THAT SELL OUT THEIR STUDENTS, PROFESSORS, RESEARCHERS, AND SURRENDER ACADEMIC FREEDOM,” he said in a statement.
On Wednesday, the White House invited nine universities to join the new agreement. The universities contacted include Vanderbilt University, Dartmouth College, the University of Pennsylvania, the University of Southern California, the Massachusetts Institute of Technology, the University of Texas at Austin, the University of Arizona, Brown University and the University of Virginia. USC, a private institution, was the only California school on the list.
At least one state welcomed the administration’s invitation.
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“The University of Texas system is honored that our flagship — the University of Texas at Austin — has been named as one of only nine institutions in the U.S. selected by the Trump administration for potential funding advantage,” Kevin Eltife, the chairman of the UT System Board of Regents and former Republican state lawmaker, said in a statement.
Schools were chosen for leadership willing to pursue reforms, and while signing isn’t required for funding, participants could get priority for grants and White House events.
What’s inside the 10-point agreement
Titled the “Compact for Academic Excellence in Higher Education,” the memo, reported by The Wall Street Journal, promises universities “preferential” access to federal funds if they sign on.
The White House said the agreement aims to raise academic standards and overall performance. Among the requirements: admissions and hiring cannot consider race or sex, tuition must remain stable for five years, undergraduate international student enrollment cannot exceed 15%, grade inflation must be addressed and applicants must submit standardized test scores such as the SAT.
The guidance goes further, saying transgender women cannot compete on women’s sports teams or use women’s locker rooms. The compact also pushes colleges to foster a “vibrant marketplace of ideas” and rethink rules or systems the White House says limit free speech. Schools are expected to protect expression on campus, making sure disruptions, vandalism or violence don’t silence speakers.
According to WSJ, the document also emphasizes the political climate on campus, calling for safe spaces for conservative students and protections to ensure they aren’t targeted or threatened for their beliefs.
Brown University’s precedent-setting deal
In July 2025, Brown University reached a landmark agreement with the Trump administration after months of negotiations over a freeze on more than $500 million in federal funding. The settlement came amid federal concerns about alleged antisemitism and other discriminatory practices on campus.
Under the agreement, Brown committed to several major policy changes, including eliminating race and sex from admissions and hiring decisions, strengthening anti-discrimination measures to protect Jewish students and faculty and contributing $50 million over ten years to local workforce development programs.
In return, the administration restored Brown’s access to federal research grants and contracts, ending a funding freeze that had posed a serious challenge to the university’s operations and research programs.
