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Cornell University to pay $60 million in deal with Trump administration to restore federal funding

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Cornell University to pay $60 million in deal with Trump administration to restore federal funding

Cornell University has agreed to pay $60 million ($30 million to the U.S. government and $30 million for agricultural research) and adopt the Trump administration's civil rights interpretations to restore over $250 million in federal research funding, ending investigations into alleged violations. The agreement, effective through 2028, mandates compliance with specific guidelines on antisemitism, racial discrimination, and transgender issues, including using a Justice Department memo on DEI programs as a training resource and providing admissions data to ensure race is not a factor. This settlement underscores the significant financial and regulatory pressures on higher education institutions to align with federal policy directives, setting a precedent for similar ongoing negotiations across the sector.

Analysis

Cornell University has agreed to a $60 million settlement, allocating $30 million directly to the U.S. government and $30 million for agricultural research, to resolve federal investigations and restore over $250 million in withheld research funding. This agreement, effective through 2028, mandates Cornell's acceptance of the Trump administration's civil rights interpretations concerning antisemitism, racial discrimination, and transgender issues. The deal signifies a material regulatory shift impacting institutional autonomy within higher education. As part of the agreement, Cornell will utilize a Justice Department memo on diversity, equity, and inclusion (DEI) programs and transgender policies for staff training. Furthermore, the university must provide extensive admissions data to demonstrate compliance with the 2023 Supreme Court ruling against affirmative action, ensuring race is not a factor in admissions. This reflects a broader federal push to reshape higher education policies and practices. The $60 million payment positions Cornell's settlement between Columbia's $200 million direct payment and UVA's no-payment deal, indicating varied approaches to resolving federal scrutiny across institutions. While the agreement restores substantial research funding, the financial outlay and mandated policy changes represent a material cost and operational adjustment for the university. This outcome sets a precedent for ongoing negotiations between federal agencies and other higher education institutions facing similar investigations.