News Summary
California Governor Gavin Newsom is warning state universities about signing a controversial compact proposed by the Trump administration. This compact could result in a loss of billions in state funding, including Cal Grants, for institutions that agree to implement conservative policies. The proposal includes requirements on gender identity, admissions, and a cap on international students, which has raised concerns among faculty and students at affected universities. Newsom emphasizes the importance of academic freedom and the dangers of federal overreach in educational governance.
Los Angeles, California – California Governor Gavin Newsom has announced a strong warning to universities in the state regarding their participation in a proposed compact by the Trump administration, threatening to cut billions in state funding, including Cal Grants. Newsom stated that universities that sign this compact, which he deems radical, would face immediate financial repercussions, emphasizing that they would “lose billions in state funding— including Cal Grants—instantly.”
The compact sought by the Trump administration stipulates that universities must implement conservative policies in exchange for prioritized access to federal funding. The proposal was sent to the University of Southern California (USC) and eight other major institutions across the country, sparking a significant debate regarding academic governance and policies.
The demands of the compact include major shifts in university policies, particularly relating to topics such as gender identity, admissions, diversity, and freedoms of speech. Specifically, it asks for institutions to adopt government-defined definitions of gender that exclude transgender individuals and to reinstate standardized testing requirements, with admissions processes to consider demographic factors like race and gender.
Among its other stipulations, the compact limits the enrollment of international students to 15% of a college’s undergraduate population. Currently, a substantial portion, approximately 26%, of USC’s incoming freshman class consists of international students, with many hailing from countries like China and India. The compact is viewed as a move that would fundamentally alter the makeup of university student bodies and limit the diversity that currently exists.
USC is the only California university to receive the compact, whereas universities from states like Texas have responded positively. Faculty and students at USC have expressed significant concern, with professors declaring the compact as a clear violation of First Amendment rights. Furthermore, Newsom labeled the compact as “nothing short of a hostile takeover of America’s universities,” highlighting the broader implications for academic freedom and governance.
This latest situation resonates with prior conflicts between the state and the Trump administration, including a recent case involving a $1.2 billion fine against UCLA related to supposed civil rights violations. Governor Newsom reiterated the importance of states resisting federal overreach, characterizing the ongoing situation as reflective of a “chaos presidency.”
Additionally, the compact proposes to freeze tuition fees for five years, further thrusting the debate into the spotlight as it seeks to align higher education with conservative ideologies while limiting liberal academic programs. The implications of such a shift could reshape the educational landscape in California and potentially across the nation.
As USC evaluates the situation, it has indicated that it is still reviewing the administration’s letter, leaving open the possibility of responding to the compact without a clear commitment. Newsom emphasized that California’s approach to academic freedom is unique and encouraged universities not to compromise their principles for the sake of financial incentives.
As discussions continue about the compact and its ramifications, the divide between state educational policies and federal directives intensifies, potentially setting the stage for a significant confrontation regarding the future governance of higher education institutions.
Deeper Dive: News & Info About This Topic
HERE Resources
USC Faculty Reject Trump Administration’s Funding Compact
Additional Resources
- Politico: Newsom Says Universities Must Reject Trump’s Compact
- Wikipedia: Higher Education in the United States
- Higher Ed Dive: Newsom’s State Funding Warning
- Google Search: Gavin Newsom Trump compact
- KCRA: Newsom Threatens to Withhold Billions from Colleges
- Google Scholar: California Higher Education Funding
- The Guardian: California University Funding and Trump Compact
- Encyclopedia Britannica: University
- Politico Pro: Newsom Threatens to Cut State Funding
- Google News: Trump compact California universities

Author: STAFF HERE LOS ANGELES WRITER
LOS ANGELES STAFF WRITER The LOS ANGELES STAFF WRITER represents the experienced team at HERELosAngeles.com, your go-to source for actionable local news and information in Los Angeles, Los Angeles County, and beyond, specializing in "news you can use" with coverage of product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise from years of dedicated reporting and strong community input, including local press releases and business updates, while delivering top reporting on high-value events like the Academy Awards, LA Auto Show, and Los Angeles Marathon, extending coverage to key organizations such as the Los Angeles Area Chamber of Commerce and the Los Angeles Tourism & Convention Board, plus leading businesses in entertainment and technology like Warner Bros. and SpaceX, and as part of the broader HERE network including HEREAnaheim.com , HERECostaMesa.com , HEREHuntingtonBeach.com , and HERESantaAna.com , providing comprehensive, credible insights into Southern California's dynamic landscape. HERE Anaheim HERE Beverly Hills HERE Coronado HERE Costa Mesa HERE Hollywood HERE Huntington Beach HERE Long Beach HERE Los Angeles HERE Mission Viejo HERE San Diego HERE Santa Ana