Why Trump wants universities to sign a new funding pact

Trump unveils higher education compact

The Trump administration in the US has unveiled a sweeping 10-point “Compact for Academic Excellence in Higher Education” that would give participating universities preferential access to federal funds. The proposal, sent to nine prominent schools this week, includes restrictions on admissions practices, tuition, enrolment, and campus politics. White House officials describe the compact as a push to raise standards, while critics warn it could undermine academic freedom, the Wall Street Journal reported.

What the compact requires

Universities that sign on must agree to ban the use of race or sex in admissions and hiring, freeze tuition for five years, and cap international undergraduate enrolment at 15 percent. Applicants would be required to take standardized tests such as the SAT, and institutions would need to take steps to curb grade inflation. Schools would also have to post post-graduation earnings for each academic program and refund tuition for students who drop out in their first semester.

Political and cultural conditions

Much of the compact focuses on the political climate on campuses. It asks universities to foster a “vibrant marketplace of ideas” and ensure that employees do not publicly express political views on behalf of the institution unless directly relevant. It calls for governance changes to make campuses more welcoming to conservatives and even proposes abolishing departments accused of stifling right-leaning perspectives. An independent auditor would monitor compliance, with results reviewed by the Justice Department.

Which universities were targeted

The first letters went to Vanderbilt, Dartmouth, the University of Pennsylvania, USC, MIT, the University of Texas at Austin, the University of Arizona, Brown University and the University of Virginia. White House adviser May Mailman said the schools were chosen because their leaders were seen as reform-minded. Institutions that comply will not only receive priority access to federal grants but also invitations to White House events and policy discussions.

Supporters and critics

Supporters inside the administration argue that the pact will help universities tackle long-standing issues such as spiralling tuition and political bias. Critics, including the American Council on Education, say the government has no place adjudicating what constitutes a “vigorous intellectual environment.” They warn that the terms could chill free speech and academic independence. “The implications for free expression are horrifying,” said Ted Mitchell, the council’s president.

Wider context of Trump’s higher education battles

The compact comes as the White House continues its clash with elite universities over antisemitism, diversity initiatives, and funding. Some schools, including Columbia and Brown, have already struck multimillion-dollar settlements with the administration, while others, such as Harvard, remain in conflict. The proposal signals an escalation of Trump’s strategy to reshape higher education by linking federal funding to ideological and financial reforms.

What happens next

Universities are not required to sign the compact, but those that refuse may find themselves disadvantaged when applying for grants. The administration has also warned that institutions violating the pact after signing could be forced to return federal funds and even private contributions received that year. With student debt and tuition costs already under intense public scrutiny, the White House is betting that some universities will view the deal as too beneficial to refuse.