Newsom Threatens Funding Cuts for Universities Signing Trump’s Compact

California Governor Gavin Newsom has announced plans to withdraw state funding from universities that agree to a controversial “compact” proposed by the Trump administration. This declaration follows the administration’s recent distribution of a letter titled the “Compact for Academic Excellence in Higher Education,” which outlines expectations for major colleges and universities to reform policies perceived as hostile to conservative viewpoints.

The 10-page letter was sent to nine prominent institutions, including Vanderbilt University, the University of Pennsylvania, and Dartmouth College. It urges these universities to sign the compact, under the condition that they will implement changes aimed at improving the treatment of conservative ideas on campus. In exchange, the universities would gain greater access to federal funding, with benefits including increased overhead payments and substantial grants.

Hours after the compact’s announcement, Newsom took to social media, warning that any California university that signs the agreement would face immediate financial repercussions. He stated, “IF ANY CALIFORNIA UNIVERSITY SIGNS THIS RADICAL AGREEMENT, THEY’LL LOSE BILLIONS IN STATE FUNDING — INCLUDING CAL GRANTS — INSTANTLY. CALIFORNIA WILL NOT BANKROLL SCHOOLS THAT SELL OUT THEIR STUDENTS, PROFESSORS, RESEARCHERS, AND SURRENDER ACADEMIC FREEDOM.”

Administration’s Expectations and University Responses

The compact’s objectives include commitments to align with government perspectives on several issues, including women’s sports, free speech, and college affordability. It also demands that institutions refrain from considering race or sex in hiring and admissions practices, freeze tuition for five years, and impose a 15% cap on international undergraduate enrollment.

According to May Mailman, a senior adviser at the White House and one of the compact’s architects, the selected universities were identified as “good actors,” indicating a willingness to engage in reform. Mailman expressed hopes that the initiative could extend to other universities and colleges, saying, “We hope all universities ultimately are able to have a conversation with us.”

As of now, the only university to express a commitment to signing the compact is the University of Texas at Austin. Its Board of Regents Chair, Kevin Eltife, stated, “We enthusiastically look forward to engaging with university officials and reviewing the compact immediately.” Other institutions, including the University of Virginia and MIT, have indicated they are currently reviewing the letter but have not made any commitments.

The deadline for universities to respond to the compact is set for November 21, 2025. As the situation unfolds, the potential consequences for California universities remain a pressing concern for both administrators and students alike.

This article was produced as part of a collaboration between NOTUS, a publication from the nonpartisan Allbritton Journalism Institute, and NEWSWELL, which encompasses Times of San Diego, Santa Barbara News-Press, and Stocktonia.