With each new resolution agreement, it becomes clearer that the Trump administration intends to base the government’s relationship with higher education on extortion. In its recently cut deal, Northwestern University will pay the Treasury $75 million in exchange for about $800 million in congressionally approved research funding it had already secured. NU now joins Columbia on the list of institutions that have paid fees to the federal government—Columbia’s deal included a $200 million payment to the Treasury over three years.
In the grand scheme of things, $75 million is chump change for Northwestern. It’s a fraction of the research funding that was at risk and barely makes a dent in the institution’s $14.3 billion endowment. It’s less than two months’ worth of the up to $40 million the institution said it was paying every month to supplement lost research funding. The payment was, according to interim president Henry Bienen, “the best and most certain method to restore our federal funding, both now and in the future.”
Part of that is likely true. Litigation would have taken years and cost many more millions. But nothing in the agreement precludes the government from leveraging federal research funding to extract certain political wins from the university again. The government didn’t even need evidence Northwestern violated any federal laws to revoke its federal funding. Officials offered no conclusions from the three investigations into antisemitism on campus the Departments of Education, Justice and Health and Human Services launched. With the punitive withholding of federal funds, the institution is being punished before it’s proven guilty. As Andrew Gillen, a scholar at the Cato Institute put it, “Much like the Queen in Alice in Wonderland who said, ‘Sentence first—verdict afterwards.’”
Before this administration, rarely did OCR investigations require institutions to pay money to the government. The resolutions focused mainly on training and improving processes at the university in question. By contrast, the agreements the Trump administration has reached with elite, research-focused universities harm the institution as well as the country. Northwestern, Columbia, Brown and others might have their funding back, but they’re now weighed down by even greater compliance burdens.
Northwestern has to report admissions data on every student who applies, is admitted and enrolls; socialize international students on the norms of campus life; and make sure nobody is wearing a face mask to conceal their identity. After cutting more than 400 jobs in July, Northwestern now has fewer people around campus to take over additional reporting duty. This is how the administration wants our leading research institutions to spend their time. And while U.S. institutions process paperwork and fight to have funding restored, China sprints ahead in artificial intelligence, robotics and innovation.
Precedent for paying fines in government settlements exists for other sectors, but those partly fund solutions to problems. Purdue Pharma, for example, paid local and state governments to fund opioid treatment, prevention and recovery services. In its multibillion-dollar settlement with the U.S. government over cheating on emissions tests, Volkswagen paid billions of dollars to fund clean energy initiatives and electric vehicle charging infrastructure. Even Columbia in its settlement agreed to pay an additional $21 million to compensate employees who may have experienced antisemitism on campus after Oct. 7, 2023. Northwestern’s millions simply disappear into Treasury’s coffers and do nothing to combat antisemitism in higher ed.
NU won’t be the last institution the government attempts to force into a settlement. This summer it demanded UCLA, a public institution, pay $1.2 billion as part of a settlement to unfreeze millions in research funds. Harvard’s heated legal battle for its funding rages on, and research funds remain frozen for Duke and Princeton.
These resolutions are a strong indicator of how the administration wants its relationship with research institutions to be—politically self-serving, one-sided and fear-based. Institutions could choose to fight, but mounting expensive legal battles without millions of research dollars isn’t really a choice at all. The agreements might be an offer universities can’t refuse.