The University of California (UC) system is negotiating with state legislators to make up for the billions of federal dollars it is at risk of losing amid tensions with the Trump administration.
UC President James Milliken sent a letter to state senators and assemblymen on Wednesday, warning the system is at risk of losing the $17 billion it earns from the federal government every year as the administration continues cracking down on universities accused of violating civil rights law. The university is currently under federal investigation for alleged racial discrimination, while some universities within the system are on thin ice for their responses to antisemitism on campus. (RELATED: EXCLUSIVE: California University Confirms Attempts To Shield Illegal Students, Staff From Deportation)
“A substantial loss of federal funding would devastate our university and cause enormous harm to our students, our patients, and all Californians,” UC’s letter reads. “Classes and student services would be reduced, patients would be turned away, tens of thousands of jobs would be lost, and we would see UC’s world–renowned researchers leaving our state for other more seemingly stable opportunities in the US or abroad. It is hard to conceive of a more damaging consequence for our state.”
People walk on the plaza outside Royce Hall, the site of 2024 pro-Palestinian protests, on the UCLA campus on July 30, 2025 in Los Angeles, California. (Photo by Mario Tama/Getty Images)
Milliken met with state legislators in August to discuss “the far-reaching consequences of the federal government’s actions.” Several representatives have locked arms with the university system to defend it against Democrat Gov. Gavin Newsom’s proposed funding cuts, which could potentially deepen the universities’ already projected deficits.
“The University faces an extraordinary challenge, and we will need the resolve and partnership of our state’s leaders if we are to ensure that UC can continue to serve the people of California as it has for generations,” the letter continues. “If the University loses the federal funding I mentioned earlier, we would need at least $4–5 billion per year to minimize the damage of that loss. That is what fighting for the people of California will take, and I look forward to further discussions regarding how the State can support UC as we strive to protect the greatest public university in the world.”
The Trump administration has already frozen $584 million in federal funds from UC Los Angeles (UCLA) over allegations the school has failed to address antisemitism and continues to racially discriminate in its admissions decisions. The administration has reportedly proposed a $1 billion settlement with the university, which UCLA has said would “completely devastate” it.
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