Columbia University Reaches $220 Million Deal With Trump To Restore Federal Research Funding

Last Updated:July 24, 2025, 08:25 IST

Under the terms of the agreement, the Ivy League university will pay $200 million over three years.

The administration has frozen over $2 billion in research funds at other top-tier schools including Cornell, Northwestern, Brown, and Princeton. (AFP)

Columbia University has reached a $220 million settlement with the Trump administration, ending months of tension over allegations of antisemitism on campus and paving the way for the restoration of federal research funding that had been revoked earlier this year.

Under the agreement, Columbia will pay $200 million over three years to the federal government. An additional $21 million will go toward resolving alleged civil rights violations against Jewish employees in the aftermath of the October 7, 2023, Hamas attack on Israel, according to the White House.

“This agreement marks an important step forward after a period of sustained federal scrutiny and institutional uncertainty," said Acting University President Claire Shipman.

Columbia had faced the loss of more than $400 million in federal grants and the threat of billions more in funding being withdrawn after the administration accused the school of failing to adequately address antisemitism during the Israel-Hamas conflict. The Republican administration made clear that continued support would hinge on sweeping institutional reforms.

In a statement following the agreement, President Donald Trump said, “I am pleased to announce that the Trump Administration has reached a historic agreement with Columbia University. Columbia has agreed to pay a penalty of $200 million to the United States Government for violating Federal Law, in addition to over $20 million to their Jewish employees who were unlawfully targeted and harassed."

Trump further praised the outcome as a major policy victory: “Columbia has also committed to ending their ridiculous DEI policies, admitting students based ONLY on MERIT, and protecting the Civil Liberties of their students on campus." He described the deal as part of a broader effort to hold universities accountable: “Numerous other Higher Education Institutions that have hurt so many, and been so unfair and unjust… are upcoming." Trump also thanked Secretary Linda McMahon and others involved in negotiating the deal, adding, “I want to thank and commend Columbia University for agreeing to do what is right. I look forward to watching them have a great future in our Country, maybe greater than ever before!"

The agreement, finalised on Wednesday, formalises a list of reforms that Columbia had begun implementing earlier this year. These include a revamp of the university’s student disciplinary process and the application of a federally backed definition of antisemitism to both academic content and campus conduct evaluations—particularly in cases involving students critical of Israel. Columbia accepted the terms without admitting wrongdoing. Shipman emphasised that the deal preserves the university’s autonomy.

Education Secretary Linda McMahon hailed the settlement as a turning point: “A seismic shift in our nation’s fight to hold institutions that accept American taxpayer dollars accountable for antisemitic discrimination and harassment." She added that Columbia’s changes “are a roadmap for elite universities that wish to regain the confidence of the American public by renewing their commitment to truth-seeking, merit, and civil debate."

Among the agreed reforms are measures first outlined in March: a review of the Middle East studies curriculum to ensure balance, new faculty appointments at the Institute for Israel and Jewish Studies, and the elimination of programs deemed to promote unlawful race-based diversity targets or DEI objectives. The university must also report to a federal monitor to verify that none of its programming supports unlawful DEI goals.

The agreement follows a period of strained negotiations and leadership instability at Columbia, which has seen three interim presidents in the past year. It was one of the first institutions targeted under Trump’s broader effort to clamp down on pro-Palestinian demonstrations and perceived antisemitism on campuses.

Columbia’s internal antisemitism task force concluded last summer that Jewish students had faced verbal abuse, ostracism, and classroom humiliation during the spring 2024 protests. At the same time, other Jewish students took part in the protests, and organisers insist their criticism was directed at Israeli government actions, not at Jewish individuals.

As part of the settlement, Columbia has also agreed to include new screening questions for international applicants aimed at understanding their motives for studying in the US., and to implement protocols ensuring all students are committed to “civil discourse." Additionally, the university committed to providing federal authorities with records of disciplinary actions involving international students on visas—specifically cases that led to suspensions or expulsions. This provision could aid Trump-era efforts to deport student activists involved in protests.

On Tuesday, the university announced that over 70 students would face suspensions, expulsions, or degree revocations for participating in a pro-Palestinian protest inside the main library in May and an alumni weekend encampment last year.

The crackdown on Columbia began with funding freezes, followed by the detention of Mahmoud Khalil, a former graduate student and prominent protester, as part of the Trump administration’s broader effort to deport non-citizen pro-Palestinian activists.

Federal investigators also searched Columbia housing as part of a Justice Department investigation into whether the university harboured undocumented individuals. At the time, Columbia leadership reaffirmed its commitment to following federal law.

Columbia served as an early test case for the Trump administration’s attempt to reshape American higher education, especially at institutions it has characterised as liberal strongholds. However, attention later shifted to Harvard University, which became the first major school to openly challenge the administration’s demands in court.

The administration has relied heavily on withholding federal research funds as leverage. More than $2 billion in funding has been frozen across other top-tier schools, including Cornell, Northwestern, Brown, and Princeton.

In a separate case earlier this year, $175 million was pulled from the University of Pennsylvania over a dispute concerning women’s sports and transgender athlete Lia Thomas. That funding was restored after the university agreed to revise records and policies.

The administration’s campaign has expanded beyond private universities. University of Virginia President James Ryan stepped down in June under pressure from a Justice Department investigation into DEI practices. A similar probe has since been opened at George Mason University.

Abhro Banerjee

Covering day-to-day national and international news for the last nine years across print and digital. Associated with News18.com as Chief Sub-Editor since 2022, covering innumerable big and small events, includ...Read More

Covering day-to-day national and international news for the last nine years across print and digital. Associated with News18.com as Chief Sub-Editor since 2022, covering innumerable big and small events, includ...

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