- Northwestern will regain $790 million in frozen federal funding after reaching a settlement with the Trump administration.
- The university agreed to pay $75 million and implement policy changes tied to antisemitism prevention and campus protests.
- The deal closes multiple federal civil rights investigations without an admission of wrongdoing by the university.
Funding Restored After Months-Long Federal Standoff
Northwestern University has reached a major agreement with the Trump administration that will restore approximately $790 million in federal research funding that had been frozen earlier this year. The resolution ends a protracted investigation sparked by allegations that the university failed to adequately protect Jewish students during campus protests related to the war in Gaza.
Under the settlement announced by the Justice Department, Northwestern will pay $75 million to the U.S. Treasury over a three-year period ending in 2028. In exchange, federal agencies will permanently close their civil rights investigations into the Illinois-based private university, and Northwestern will once again be eligible for federal grants and contracts.
Attorney General Pam Bondi described the deal as a significant win, saying it reinforces the administration’s position that universities receiving federal funds must comply fully with civil rights laws. Education Secretary Linda McMahon echoed that view, calling the agreement a “huge win” that commits the school to reforms aimed at preventing harassment and discrimination on campus.
The funding freeze, announced in April, had serious consequences for Northwestern. It contributed to layoffs, disrupted research, and preceded the resignation of then-President Michael Schill. Interim President Henry Bienen later described the period as deeply destabilizing for the campus community.
Policy Changes, Training Requirements, and Broader Context
As part of the agreement, Northwestern committed to maintaining clearer rules governing protests and other expressive activities.
The university will also implement mandatory antisemitism training for all students, faculty, and staff, and certify quarterly that it is complying with the terms of the deal. The settlement requires the school to revoke a prior agreement that ended a pro-Palestinian encampment on campus in 2024.
Additional provisions reinforce compliance with federal anti-discrimination laws, Title IX protections for women, and initiatives designed to help international students understand expectations around open debate. Northwestern officials emphasized that the agreement does not compromise the university’s academic independence or control over its curriculum, admissions, or hiring decisions.
The Northwestern deal is part of a broader effort by President Donald Trump’s administration to use federal funding as leverage to push policy changes at elite universities it has accused of embracing “woke” ideology.
Similar agreements have recently been reached with Cornell, Brown, and Columbia, with Northwestern’s $75 million payment ranking as the second-largest settlement after Columbia’s $200 million deal.
Harvard, another prominent target of the administration, remains in negotiations and has challenged funding cuts in court. Unlike some institutions, Northwestern declined earlier offers that would have tied future federal funds to a broader policy compact aligned with the administration’s agenda.
Interim President Bienen said the agreement closes “a deeply painful and disruptive chapter” for the university, allowing it to move forward with restored funding and renewed stability.