Cornell University has reached a $60 million settlement with the Trump administration, ending a months-long standoff over alleged civil rights violations that had halted federal research funding. The Ivy League school will now comply with the administration’s interpretation of civil rights laws in exchange for reinstating more than $250 million in frozen federal funds. The deal, hailed by officials as a “transformative commitment,” marks a significant moment in the growing clash between universities and the federal government over diversity, equity, and inclusion policies.
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$60 Million Settlement Breakdown
Under the agreement, Cornell will pay $30 million directly to the U.S. government and allocate another $30 million toward agricultural research benefiting American farmers. President Michael Kotlikoff announced the deal on Friday, emphasizing that it safeguards the university’s academic values. He stated the pact “revives the campus’ partnership with the federal government while affirming the university’s commitment to the principles of academic freedom, independence, and institutional autonomy that, from our founding, have been integral to our excellence.”
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Restoring Federal Funding
The settlement restores over $250 million in federal research funding that was withheld amid ongoing investigations into alleged civil rights violations. The Trump administration had frozen the funds, citing noncompliance with civil rights laws related to antisemitism, racial discrimination, and transgender issues. The agreement now allows Cornell to resume its federal partnerships while aligning with Washington’s newly enforced standards.
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Government’s Interpretation Enforced
Cornell’s deal requires the university to follow the Trump administration’s reading of federal civil rights laws, particularly on issues of diversity, antisemitism, and gender identity. A Justice Department memo directing universities to end diversity, equity, and inclusion (DEI) programs and transgender-inclusive policies will now serve as a mandatory training document for Cornell’s faculty and staff. The move represents a major shift in how the university must balance academic autonomy with federal oversight.
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Admissions Data and Compliance
As part of the agreement, Cornell must provide detailed admissions data to federal investigators to confirm that race is no longer considered in student selection, following the Supreme Court’s 2023 decision striking down affirmative action. The university’s president must personally certify compliance with the agreement every quarter through 2028, ensuring sustained adherence to the federal standards.
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Praise from the Administration
Education Secretary Linda McMahon lauded the deal as a pivotal reform in higher education. Calling it a “transformative commitment,” she posted on X that “these reforms are a huge win in the fight to restore excellence to American higher education and make our schools the greatest in the world.” McMahon framed the agreement as a victory for merit-based admissions and truth-driven academia.
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Comparison with Other Universities
Cornell’s six-page agreement mirrors one recently signed by the University of Virginia but is notably less detailed than the stricter deals reached with Columbia University and Brown University. The financial terms also reflect a middle ground: Columbia agreed to pay $200 million directly to the government, Brown settled for $50 million to state workforce programs, while Virginia’s agreement involved no payment at all. Cornell’s approach, combining federal and research funding, appears designed to balance compliance with autonomy.
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A Shift in Higher Education
The deal underscores a growing national trend: universities navigating political and legal pressures while trying to retain academic freedom. With federal funding at stake, many institutions are reassessing their DEI and admissions policies. Cornell’s settlement, effective through the end of 2028, sets a precedent that may shape how other top-tier universities engage with federal civil rights enforcement moving forward.