Northwestern University federal funding restored after school reaches deal with Trump administration, officials say

EVANSTON, Ill. (WLS) — Federal troubles that loomed over Northwestern University in Evanston for months seem to be over.

The university announced Friday that it has reached a deal with the federal government to restore hundreds of millions of dollars in research funding, while also ending what the school’s interim president calls “a deeply painful and disruptive period in our university’s history.”

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The federal funding was frozen by President Donald Trump’s administration earlier this year amid antisemitism probes by multiple government agencies, including the Department of Justice, as the government investigated alleged civil rights violations at universities across the country.

The new agreement not only means hundreds of millions of dollars in federal funds have been restored to research Northwestern leadership calls “critical,” but it also requires the university to pay the government $75 million over the next three years while ending those investigations into the school.

The school was once facing criticism over its handling of last year’s pro-Palestinian demonstrations on campus.

Then-President Michael Schill was grilled on Capitol Hill during his testimony before Congress in May of 2024. He eventually stepped down in September.

SEE ALSO | Northwestern University faculty members urge ‘no deal’ with Trump administration

The school is also agreeing to a new student conduct that addresses alleged antisemitism, discrimination and harassment while also prohibiting protests inside of academic buildings and banning overnight demonstrations, tents and masks.

The university says the settlement does not admit any wrongdoing on its part, and it expects funding to be fully restored within a month. The school now has up until 30 days to create a special oversight committee to make sure the university remains in compliance with the agreement.

More information on the terms of the deal between the university and the government can be found here.