Gov. Gavin Newsom is threatening to withhold billions in state funds from any California college that signs onto an agreement crafted by President Donald Trump’s administration requiring schools to agree to support the President’s education agenda in order to have access to federal dollars. The 10-page “Compact for Academic Excellence in Higher Education” requires universities to adhere to rules written by the administration in a variety of areas, including admissions, hiring, free speech on campus, teaching and the use of endowments.”Institutions of higher education are free to develop models and values other than those below, if the institution elects to forego federal benefits,” the compact states. “IF ANY CALIFORNIA UNIVERSITY SIGNS THIS RADICAL AGREEMENT, THEY’LL LOSE BILLIONS IN STATE FUNDING — INCLUDING CAL GRANTS — INSTANTLY. CALIFORNIA WILL NOT BANKROLL SCHOOLS THAT SELL OUT THEIR STUDENTS, PROFESSORS, RESEARCHERS, AND SURRENDER ACADEMIC FREEDOM,” Gov. Gavin Newsom said in a statement Thursday, intending for the entire statement to be written completely in uppercase letters. The compact was sent to nine universities this week, with the only California school being the University of Southern California. A spokesperson for the university did not immediately respond to a request for comment Thursday afternoon. USC is a private school and the bulk of its state funds are received through Cal Grants. Cal Grants are part of the state’s financial aid program that provides funding to students, and the money does not need to be paid back. According to the California Department of Finance, USC received a total of $28.4 million in Cal Grant funding in the past year. The independent California intuitions together received $227.6 million in total in that same year.State schools including the University of California, California State University and California Community College systems received a total of $2.2 billion in Cal Grant funds in the 2024-2025 budget year. Public institutions are also eligible for the state’s Middle Class Scholarship, which is another large source of state financial aid funding to California institutions. Independent private for-profit institutions like USC are not eligible for it, the Department of Finance Confirmed. Private institutions are able to tap into several other state financial aid programs, such as the Golden State Teacher Grant, Chafee, and others. For USC, the Department of Finance said state funds from those sources range in the low millions of General Fund dollars per year. A spokesperson for the White House responded to the governor’s threats Thursday night. “Gavin Newscum should worry about the disaster he’s created in his own state – from endangering girls by forcing men in their sports to hiding critical information from parents about their children’s health,” said Abigail Jackson, a spokeswoman for the White House. “By opposing the compact, Newscum is opposing efforts to cap wild tuition hikes and to protect free speech. The Trump Administration is reforming higher education across America and encouraging universities to join us in restoring academic excellence and common-sense policies.” [/related]See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel(More state politics coverage in the video below: California to spend at least $2 million to correct Prop 50 voter guides.)
Gov. Gavin Newsom is threatening to withhold billions in state funds from any California college that signs onto an agreement crafted by President Donald Trump’s administration requiring schools to agree to support the President’s education agenda in order to have access to federal dollars.
The 10-page “Compact for Academic Excellence in Higher Education” requires universities to adhere to rules written by the administration in a variety of areas, including admissions, hiring, free speech on campus, teaching and the use of endowments.
“Institutions of higher education are free to develop models and values other than those below, if the institution elects to forego federal benefits,” the compact states.
“IF ANY CALIFORNIA UNIVERSITY SIGNS THIS RADICAL AGREEMENT, THEY’LL LOSE BILLIONS IN STATE FUNDING — INCLUDING CAL GRANTS — INSTANTLY. CALIFORNIA WILL NOT BANKROLL SCHOOLS THAT SELL OUT THEIR STUDENTS, PROFESSORS, RESEARCHERS, AND SURRENDER ACADEMIC FREEDOM,” Gov. Gavin Newsom said in a statement Thursday, intending for the entire statement to be written completely in uppercase letters.
The compact was sent to nine universities this week, with the only California school being the University of Southern California. A spokesperson for the university did not immediately respond to a request for comment Thursday afternoon.
USC is a private school and the bulk of its state funds are received through Cal Grants. Cal Grants are part of the state’s financial aid program that provides funding to students, and the money does not need to be paid back.
According to the California Department of Finance, USC received a total of $28.4 million in Cal Grant funding in the past year. The independent California intuitions together received $227.6 million in total in that same year.
State schools including the University of California, California State University and California Community College systems received a total of $2.2 billion in Cal Grant funds in the 2024-2025 budget year. Public institutions are also eligible for the state’s Middle Class Scholarship, which is another large source of state financial aid funding to California institutions. Independent private for-profit institutions like USC are not eligible for it, the Department of Finance Confirmed.
Private institutions are able to tap into several other state financial aid programs, such as the Golden State Teacher Grant, Chafee, and others. For USC, the Department of Finance said state funds from those sources range in the low millions of General Fund dollars per year.
A spokesperson for the White House responded to the governor’s threats Thursday night.
“Gavin Newscum should worry about the disaster he’s created in his own state – from endangering girls by forcing men in their sports to hiding critical information from parents about their children’s health,” said Abigail Jackson, a spokeswoman for the White House. “By opposing the compact, Newscum is opposing efforts to cap wild tuition hikes and to protect free speech. The Trump Administration is reforming higher education across America and encouraging universities to join us in restoring academic excellence and common-sense policies.”
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See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel
(More state politics coverage in the video below: California to spend at least $2 million to correct Prop 50 voter guides.)