California Gov. Gavin Newsom warned Thursday that the state will withhold $2.4 billion in scholarships and university funding from any institution that signs onto President Donald Trump’s proposed “Compact for Academic Excellence in Higher Education.”
The 10-page compact, unveiled by the White House this week, would tie federal grants to a set of conservative-aligned campus rules governing admissions, hiring, teaching, free speech, and endowments. In exchange, universities that sign are promised increased federal funding.
Newsom’s statement specifically targeted the University of Southern California (USC), the only California university currently offered the deal. “If USC or any other California school accepts this compact, they are selling out their students and values,” Newsom said, vowing to cut off access to need-based Cal Grants and other state aid.
The governor’s move escalates the clash between Trump’s administration and higher education leaders, who say the compact threatens academic independence. Critics warn that tying federal dollars to ideology sets a precedent for political control of universities, while Trump officials argue the program protects free expression and fairness for conservative students.
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