Donald Trump Secures $75 Million Northwestern Deal: &#039...

By Sam Stevenson

Associate News Editor

ShareNewsweek is a Trust Project member

Northwestern University will pay $75 million to the federal government in a deal the U.S. Secretary of Education has described as a “huge win.”

Newsweek contacted Northwestern via email outside of normal business hours for comment.

Why It Matters

The agreement between President Donald Trump's administration and Northwestern marks a significant juncture in the ongoing national debate over civil rights compliance, academic freedom, and federal oversight at major U.S. universities.

After the freeze of nearly $800 million in federal research funds, the deal’s resolution both restores essential support for academic research and institutes new requirements intended to bolster anti-discrimination efforts—especially against anti-Semitism.

It comes amid heightened scrutiny of higher education institutions’ responses to campus protests and national calls for merit-based admissions policies.

...

What To Know

On Friday, the U.S. Department of Justice, Department of Education, and Department of Health and Human Services announced a final agreement with Northwestern.

As a condition of resolving multiple federal investigations, Northwestern agreed to pay $75 million to the U.S. Treasury through 2028.

The investigations centered on concerns about the university’s admissions standards, handling of alleged anti-Semitic incidents, and adherence to federal discrimination laws—including those regarding race, religion, sex, and national origin.

Under the settlement’s terms, Northwestern must implement comprehensive anti-discrimination policies, prohibit race-based preferences in admissions, scholarships, hiring, and promotions, and introduce mandatory anti-Semitism training for all students, faculty, and staff.

Additionally, representatives from Northwestern’s leadership must certify the university’s compliance on a quarterly basis.

In exchange, the Trump administration agreed to "treat Northwestern as eligible for future grants, contracts, and awards" after approximately $790 million in research funding was frozen.

It also agreed to "close pending investigations" into the institution.

Northwestern interim president Henry Bienen said the agreement "ends a deeply painful and disruptive period in our university’s history." The university emphasized that it retains full academic freedom and autonomy.

Bienen said: "Northwestern runs Northwestern. Period."

What People Are Saying

Attorney General Pam Bondi said: "Today’s settlement marks another victory in the Trump Administration’s fight to ensure that American educational institutions protect Jewish students and put merit first. Institutions that accept federal funds are obligated to follow civil rights law—we are grateful to Northwestern for negotiating this historic deal."

Assistant Attorney General Harmeet Dhillon said: "We appreciate the significant improvements Northwestern has made and are gratified to reach an agreement that safeguards the rights of all the university’s applicants, students, and employees."

U.S. Secretary of Education Linda McMahon said: "The Northwestern agreement is a huge win for current and future Northwestern students, alumni, faculty, and for the future of American higher education. The deal cements policy changes that will protect students and other members of the campus from harassment and discrimination, and it recommits the school to merit-based hiring and admissions. The reforms reflect bold leadership at Northwestern, and they are a roadmap for institutional leaders around the country that will help rebuild public trust in our colleges and universities. Congrats to Assistant Attorney General Harmeet Dhillon and all those involved in negotiating this landmark deal!"

Henry S. Bienen, Northwestern’s interim president, said: "We understand how difficult the past seven months have been since our federal research funding was frozen, and that many of you have felt the impacts deeply and personally. The experience has been grueling, and we appreciate the care and professionalism you have taken as we have navigated this difficult stretch as a community."

He added: "We must now refocus on what matters most: advancing our mission, upholding the highest standards of academic and institutional excellence, and empowering students and scholars to drive change in the world through research and innovation.

"As we move ahead, we will do so with purpose and conviction, speaking boldly for the values that define Northwestern, especially in moments of adversity. We are focused on the future and guided by an understanding of the past, as are all academic pursuits."

What Happens Next

This agreement sets a precedent for how the federal government may interact with universities in future cases involving discrimination and free expression.

The circumstances set by this case are likely to shape future university approaches to balancing academic governance, campus speech, and compliance with federal civil rights mandates, as the Trump administration and its successors continue to assert oversight in these areas.

Request Reprint & LicensingSubmit CorrectionView Editorial & AI Guidelines