UPDATE: USC is currently embroiled in a high-stakes funding battle as California Governor Gavin Newsom threatens to withdraw billions in state support if the university complies with demands from the Trump administration. This urgent situation has the potential to reshape campus life for students relying on vital financial aid, such as Cal Grants.
On October 2, Newsom issued a stark warning declaring that any California university, including USC, that signs a proposed “Compact for Academic Excellence in Higher Education” backed by former President Donald Trump would face immediate funding cuts. His statement underscores the escalating tensions between state and federal educational policies.
The White House has requested that USC and eight other prestigious universities align with Trump’s conservative agenda regarding issues of gender identity, admissions, and free speech to gain priority access to federal funding. This proposal has been met with fierce resistance from faculty and students at USC.
According to the October 1 letter from the White House, the compact includes controversial stipulations that would redefine the government’s interpretation of gender, impacting campus facilities and sports teams. Additionally, it would restrict international student enrollment to just 15% of the undergraduate population, heavily impacting USC, where 26% of the incoming freshmen are international students.
Cutting international enrollment would significantly harm USC’s finances, as tuition from these students is a critical revenue source. The university has already faced numerous layoffs this year amid budget constraints, making this funding crisis even more pressing.
“If any California university signs this radical agreement, they’ll lose billions in state funding — including Cal Grants — instantly,” Newsom stated, emphasizing that California will not support institutions compromising academic freedom.
In the 2024-25 academic year, California distributed $2.5 billion in Cal Grants, vital for many students. The stakes are incredibly high as USC’s interim President Beong-Soo Kim confirmed that no final decision has yet been made, leaving the university’s future hanging in the balance.
While some institutions, like MIT, have already rejected Trump’s proposal, the environment for California colleges remains fraught with uncertainty. Reports suggest that the White House’s funding strategy may be designed to pressure universities into compliance, with federal grants being withheld based on adherence to the compact.
Political analysts believe that Newsom’s aggressive stance may provide cover for USC to resist federal pressure. Students and faculty are expressing hope that the governor’s intervention offers a pathway to protect the university’s academic integrity while navigating this political minefield.
As this situation develops, the implications for USC and other California universities could be profound. The community is bracing for a potential clash that could redefine academic policies and student life across the state.
Stay tuned for more updates on this unfolding story as both the university and state officials weigh their options.
