California Governor Gavin Newsom announced on March 14, 2024, that he will eliminate state funding for any California university that signs a controversial compact promoted by the Trump administration. This compact, titled “Compact for Academic Excellence in Higher Education,” requests major institutions to adopt a set of conservative principles in exchange for more favorable federal funding opportunities.
The White House sent the compact to nine prominent universities, including the University of Southern California (USC), Vanderbilt University, and the University of Pennsylvania. The compact calls for adherence to several stipulations, such as limiting the use of race and gender in admissions processes, restricting biological males from competing in women’s sports, capping the number of international students, and ensuring a “vibrant marketplace of ideas” that supports conservative perspectives.
In response to the compact’s circulation, Newsom declared that any university agreeing to the terms would face severe financial consequences. “If any California university signs this radical agreement, they’ll lose billions in state funding — including Cal Grants — instantly,” he stated. Newsom’s office characterized the proposed compact as a “hostile takeover of America’s universities.”
The compact was first reported by the Wall Street Journal, which noted that a White House official indicated the letter would eventually reach more institutions. Although the compact suggests that universities refusing to sign may not lose federal funding, those that do participate could see improved access to federal resources.
Accompanying the compact, a letter signed by Education Secretary Linda McMahon, Domestic Policy Council Director Vince Haley, and White House Adviser May Mailman emphasized that institutions are free to adopt alternative models and values if they choose to forfeit federal benefits.
The Trump administration has increasingly tied federal funding to compliance with its policies regarding various issues, including gender identity. This latest initiative reflects a broader strategy to influence institutions of higher education through financial incentives.
As the situation develops, universities across California and beyond will likely weigh the implications of aligning with the Trump administration’s agenda against the potential loss of substantial state funding. Newsom’s firm stance underscores the growing divide in educational policy and governance at the state and federal levels.
