Trump Admin Agrees Not To Use Federal Funds To ‘Coerce’ California Universities Into Compliance

The Trump administration on Friday reached an agreement with the University of California, Los Angeles (UCLA) that requires the government to retract its $1.2 billion demand and restore millions in federal funding.

A preliminary injunction against the Trump administration’s efforts to punish UCLA over accusations of rampant antisemitism and its race-based admissions policy has been modified after a joint decision by the government and a professors’ association. The government agreed to stop using federal funding to “coerce” the university into compliance and to follow the proper procedure to revoke funding in the future if the university is found in violation of civil rights laws.

The Trump administration had revoked $584 million in federal funding from the university and proposed a $1 billion resolution agreement in 2025.

While the administration can no longer seek payments from or impose fines on UCLA over alleged federal law violations, it can still propose “voluntary resolution” agreements to resolve investigations or lawsuits. (RELATED: Elite University System Shudders At Trump Settlement’s Price Tag)

The order applies to all University of California campuses.

The court clarified that the administration must follow a clear set of steps before revoking funding from a school, including declaring that the school violated a federal law and attempting to achieve a voluntary agreement. If it is determined no agreement can be reached, give the university clear notice, conduct a hearing, give school officials “a reasonable opportunity” to defend the institution, and go through the proper legislative procedure to cancel the grants if ultimately warranted.

The funding termination must also be limited to the specific program found in violation, unlike the Trump administration’s previous efforts to eliminate large swaths of grants from multiple federal agencies.

The injunction was originally applied to the administration’s actions in November after a court claimed the funding cuts and resolution price tag were a political move “with the goal of bringing universities to their knees and forcing them to change their ideological tune.” The administration had accused UCLA of continuing race-based admissions after the school publicized its method of skirting a Supreme Court ruling banning race-based admissions.

The Department of Justice in January filed a motion to join a class action lawsuit against UCLA’s medical school over similar racial discrimination accusations.

After the start of the Israel-Hamas war on Oct. 7, 2023, the university also allowed massive demonstrations to persist on campus, including a “Jew Exclusion Zone,” which it has since settled a lawsuit over to the tune of nearly $6.5 million.

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