Northwestern University nearing deal with Trump administration that would restore federal funding

Northwestern University is reportedly nearing an agreement with the Trump administration that would restore hundreds of millions of dollars in frozen funding and end a federal antisemitism investigation.

The New York Times reported Wednesday that Northwestern would pay a $75 million fine to the federal government under the deal. The terms of the agreement have not been made public and could change.

In a statement Wednesday to the Chicago Sun-Times, a spokesperson for the U.S. Education Department said the deal is not final, but “the parties are negotiating in good faith and making progress.”

The Trump administration froze about $790 million in federal funding for Northwestern in April amid an Education Department investigation into alleged “widespread antisemitic harassment” at the university.

“We look forward to announcing a final agreement soon that will ensure all students have equal learning opportunities, hiring and admissions decisions are merit-based, and the university once again prioritizes truth seeking and academic excellence,” an Education Department spokesperson wrote.

A Northwestern spokesperson did not immediately respond to a request for comment.

Several elite universities have worked to reach similar deals with the Trump administration in recent months over allegations of antisemitism and racial discrimination on campus. Some have resulted in cash payments directly to the federal government.

Cornell University in New York struck a deal earlier this month that’s expected to result in a $30 million fine and a required $30 million investment in the school’s farming and agriculture programs, The New York Times reported.

The Trump administration and congressional Republicans have attacked Northwestern University for months over the university’s handling of campus protests related to the war in Gaza.

The situation contributed to the sudden resignation of former university president Michael Schill in September.

Students, faculty, community members and protesters at the encampment at Deering Meadow at Northwestern University before it was taken down.

Students, faculty, community members and protesters at the encampment at Deering Meadow at Northwestern University before it was taken down.

Tyler Pasciak LaRiviere/Sun-Times

House Republicans grilled Schill during a congressional hearing in May about the agreement he made with pro-Palestinian student organizers to end an encampment on campus. Republicans characterized the deal as a surrender to what they called antisemitic activists.

Schill, who is Jewish, defended the agreement as part of his commitment to protecting students’ safety and furthering conversations among people with different perspectives.

In July, Northwestern announced it was cutting 425 positions at the university amid the federal funding freeze. Nearly half of the positions had been vacant, according to the university.

The Trump administration has threatened to cut funding for research at dozens of other top universities over their diversity, equity and inclusion practices related to hiring and student admissions.

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