As US President Donald Trump aggressively moves to reshape the landscape of American higher education, university leaders across the country are quietly shifting their strategies—ramping up lobbying, reevaluating campus policies, and bracing for a wave of funding cuts, tax hikes, and political scrutiny, the Wall Street Journal reported.
At a recent breakfast with lawmakers, University of Michigan President Santa Ono delivered a stark message: universities need to “wake up” and listen to their most “vocal critics.” The gathering underscored a growing reality—schools are being forced to engage directly with a Washington that no longer views them as untouchable institutions of public trust.
A chill in federal relations
Trump’s renewed focus on rooting out what he calls “radical Left” ideology in academia has sparked immediate consequences. The administration has targeted diversity, equity, and inclusion (DEI) programmes, and threatened to withdraw federal funds from schools that fail to align with its priorities. Columbia University was the first to capitulate, agreeing to a sweeping list of White House demands after Trump froze $400 million in funding over its handling of pro-Palestinian protests.
Behind closed doors, other universities have quietly followed suit, sending emissaries to Capitol Hill and initiating damage-control discussions with lawmakers from both parties. More than 50 institutions, including Harvard, Yale, and Stanford, have hired new lobbyists since Trump’s re-election—many with deep Republican ties. Duke and Wake Forest, for instance, brought on former GOP Senator Richard Burr, while Harvard and Vanderbilt tapped Ballard Partners, a firm with strong links to Trump’s inner circle.
Endowments, aid, and academic freedom at risk
At the heart of the standoff is a series of proposed financial penalties that could reshape how universities operate. Legislation from Sen. JD Vance and Sen. Tom Cotton would dramatically increase taxes on large university endowments, with some estimates suggesting a one-time tax alone could raise $16.6 billion. Other measures aim to force schools to pay a portion of unpaid federal student loans if graduates default—something higher education officials warn could slash financial aid and limit access.
The stakes are high. Many elite schools rely on federal funding for research, student loans, and grants—sometimes accounting for more than a quarter of their operating budgets. Already, institutions like Harvard and the University of California system have paused hiring as funding uncertainty looms.
Adding to the tension, Trump recently withheld $175 million from the University of Pennsylvania over its past inclusion of a transgender athlete in women’s sports—a warning to other schools that social policy decisions can come with steep fiscal consequences.
A culture war on campus
The Trump administration’s campaign extends beyond finances. Lawmakers plan to reopen hearings on antisemitism in academia, with several presidents expected to be called before Congress. Memories remain fresh from the explosive 2023 session that cost the leaders of Harvard, UPenn, and MIT their jobs. Universities are also under pressure to shed policies or practices seen as “woke”—from pronoun usage in email signatures to curriculum content.
Faced with mounting pressure, many college presidents are treading carefully. Wesleyan University President Michael Roth is among the few who have publicly challenged the administration, warning that Trump’s agenda amounts to “a war on civil society.” But most institutions are opting for diplomacy over confrontation, even as they fight to protect academic independence.
Navigating a political minefield
Some universities are working to rebuild bipartisan goodwill. Davidson College, for example, has joined a coalition of liberal arts schools hiring lobbyists for the first time. Davidson President Douglas Hicks recently met with lawmakers on Capitol Hill to argue that an endowment tax would undermine financial aid for students. Others, like Vanderbilt and Washington University in St. Louis, are investing in messaging campaigns that emphasise neutrality, avoiding “political ideology” or “a particular vision of social change.”
Still, political calculus remains fraught. Many university officials are counting on red-state allies to help defend research funding or block punitive measures. But with few Republicans in Congress willing to go to bat for higher education, schools are increasingly on their own.
As the Trump administration accelerates its push to rein in the country’s most influential academic institutions, the balance universities must strike—between protecting their core values and adapting to a new political reality—may determine the future of higher education for years to come.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!