Trump Sets Tough Terms For Colleges Seeking Federal Funds

President Donald Trump’s administration has proposed new conditions for universities seeking preferential access to federal funds.

A 10-point memo sent to leading schools on Wednesday outlines limits on foreign student enrollment, bans on race- or sex-based hiring and admissions, tuition freezes, and mandatory standardized testing.

The Trump admin has asked nine universities to sign a new “Compact for Academic Excellence in Higher Education.”

“Universities that agree to the terms will enjoy benefits including access to federal student loans, grants and contracts as well as research funding, approval of… pic.twitter.com/YtAfvsw2AE

— Steve McGuire (@sfmcguire79) October 2, 2025

The memo also demands universities promote “viewpoint diversity,” reform governance structures, and curb what the White House calls hostility to conservative ideas.

Schools would be required to share records of foreign students with federal agencies and ensure no more than 15% of undergraduates are on student visas, with a 5% cap per country.

Rights advocates warn the plan threatens free speech and academic freedom. The administration is already investigating colleges over pro-Palestinian protests and has reached costly settlements with Columbia and Brown. Trump said talks with Harvard could result in a $500 million settlement.

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