California Governor Threatens Funding Cuts for Universities Joining Trump’s Compact

California Governor Gavin Newsom (D) has warned that state funding will be withheld from any universities that sign President Donald J. Trump’s “Compact for Academic Excellence in Higher Education,” sparking a fierce debate over academic freedom and institutional autonomy. The compact, promoted by the Trump administration as a framework to protect free speech and limit tuition hikes, faces staunch opposition from Newsom, who labeled its provisions “insane.”

Newsom’s threat emerged amid discussions about the compact’s implementation at California institutions, including the University of Southern California (USC). The agreement outlines 10 requirements for federal funding, such as eliminating racial or gender-based admissions preferences, ensuring free speech protections, and recognizing biological sex distinctions in sports policies. Newsom accused the compact of imposing “radical conservative ideological restrictions” on higher education, vowing to cut billions in state funds—including Cal Grants—for any university that adopts it.

White House Deputy Press Secretary Abigail Jackson defended the compact, stating that Newsom’s opposition undermines efforts to curb tuition increases and safeguard free speech. “By opposing the compact, Newsom is opposing efforts to cap wild tuition hikes and to protect free speech,” she said.

The compact also includes provisions for financial accountability, foreign policy neutrality, and institutional oversight by an external monitor reporting to the Department of Justice. Newsom did not specify which aspects he found objectionable, calling them “insane” in a social media post. The standoff highlights growing tensions over the role of government in shaping higher education policies.