Columbia University on the cusp of a deal with Trump administration, paying millions to unlock federal funding

People walk through Columbia University campus on the first day of the new semester September 3, 2024, in New York. (Adam Gray/Reuters/File via CNN Newsource)

Columbia University is on the verge of striking an agreement with the Trump administration following months of negotiation to restore federal funding to the school, according to two sources familiar with the deal.

Columbia is expected to pay a multimillion-dollar settlement to victims of alleged civil rights violations, implement changes to its diversity, equity and inclusion policies, boost transparency about hiring and admissions efforts, and take other steps to improve security and safety on campus for Jewish students, according to one source familiar with the matter.

In return, the source said, the school will regain access to over US$400 million in federal funding the Trump administration stripped earlier this year.

Trump administration officials and officials from Columbia are expected to meet next week at the White House, the source said. The deal has not been finalized and remains subject to change.

The administration believes the deal, the terms of which were first reported by the Washington Free Beacon, could serve as a blueprint for other schools. A second source familiar with the matter noted the Trump administration has been approaching its negotiations with universities, including Columbia and Harvard University, with a framework of the schools paying a financial penalty. The exact dollar amount is unclear, though it varies by school.

Elite schools like Columbia and Harvard University, among others, have faced intense pressure from the Trump administration to crack down on antisemitism on their campuses – or face the possible loss of significant federal funding. The effort is part of a broad administration push for policy changes at universities – including over diversity, equity and inclusion and other initiatives – that U.S. President Donald Trump sees as a winning political issue. But it is one that raises major questions about academic freedom and the role of the federal government on college campuses.

The school’s board of trustees met July 6 to review the terms of the deal, according to one of the sources.

The New York City university, which is facing an investigation into its handling of antisemitism on campus, had taken a less confrontational approach than Harvard while it sought to reach a deal, and the source told CNN the administration was more amenable to Columbia’s proposed terms in behind-the-scenes negotiations. In June, the Trump administration threatened to pull the university’s accreditation over policies it said violated discrimination laws.

Talks between a small circle of officials from Trump administration and Harvard had deteriorated in recent weeks amid disputes over some sticking points of that deal.

A Columbia spokesperson emphasized that negotiations remain ongoing.

“The University is focused on advancing discussions with the federal government. There is no resolution at this time,” the spokesperson said.

Asked about the state of talks, Trump told CNN last week, “I think we’re going to probably settle with Harvard. We’re going to probably settle with Columbia. They want to settle very badly. There’s no rush.”

Asked how much money the settlement would entail, Trump said, “A lot of money.”

A source involved in universities’ response to the administration told CNN last month the White House has been looking to strike a deal with a high-profile school.

“They want a name-brand university to make a deal like the law firms made a deal that covers not just antisemitism and protests, but DEI and intellectual diversity,” this person said at the time.

Asked whether any of the schools are inclined to make such a deal, the source said, “Nobody wants to be the first, but the financial pressures are getting real.”

Last month, acting Columbia President Claire Shipman described the financial pressures facing the university due to the administration’s campaign as “increasingly acute.”

“Columbia’s top scientists are facing the decimation of decades of research. Graduate students, postdocs, mid-career researchers, and established, celebrated scientists, have all had their breakthroughs lauded by the world one minute and defunded the next. We’re in danger of reaching a tipping point in terms of preserving our research excellence and the work we do for humanity,” Shipman said in a letter to the Columbia community.

She indicated it was “essential” to restore the university’s partnership with the federal government, but took aim at criticism that a resolution would amount to “capitulation.”

Shipman said that Columbia has “engaged in conversations” with the administration about what she described as an “unacceptable” surge in antisemitic incidents on campus.

“We’ve committed to change, we’ve made progress, but we have more to do,” she said.

By Betsy Klein.