(C) Politico

NEW YORK — Northwestern University, a prestigious private institution in Illinois, has agreed to a settlement with the US federal government, committing to pay $75 million (approx. ₩1,100 billion) to restore its halted federal research funding. The settlement marks a significant win for the Trump Administration’s aggressive campaign targeting elite universities over campus antisemitism and their adherence to diversity principles.

Target of 'Taming the Elites' Campaign 

Northwestern became the first non-Ivy League university to have its federal funding suspended after the Trump Administration, citing the university’s inadequate response to antisemitism on campus, halted a massive $790 million (approx. ₩1.16 trillion) in research grants in April. This action was coupled with an investigation into alleged violations of civil rights law.

The Trump Administration has been applying intense pressure—including threats of research funding cuts—to top-tier schools like Harvard and Columbia, demanding they bolster efforts to combat antisemitism and, crucially, eliminate the use of diversity principles in their admissions and hiring processes.

Key Terms of the Settlement 

The agreement dictates that Northwestern must take several sweeping steps:

Payment: Pay a settlement sum of $75 million to the US government.
Antisemitism Investigation: Launch internal investigations related to antisemitism on campus.
End Diversity Policies: Cease applying diversity principles in its admissions and staff hiring processes, aligning with the administration's anti-Diversity, Equity, and Inclusion (DEI) stance.
Rescind Prior Agreement: Annul the agreement reached last year between the former president and pro-Palestinian student protesters. 

Context: The Campus Protest Backlash 

The pressure on Northwestern stems largely from the fallout over campus demonstrations that swept US universities following the outbreak of the Gaza War in 2023. Jewish advocacy groups vehemently criticized the previous administration, specifically former President Michael Schill, for striking a deal with pro-Palestinian encampment organizers. That agreement allegedly included concessions, such as providing scholarships to Palestinian undergraduate students, in exchange for dismantling the protest tents.

Schill, who faced fierce backlash and the looming threat of federal sanctions, subsequently resigned in September.

Following the Ivy League Trend 

Northwestern’s settlement follows a pattern set by several Ivy League institutions. In July, Columbia University agreed to pay $200 million to regain its federal subsidies. This was followed by similar large settlements with Cornell University ($60 million) and Brown University ($50 million).

This trend highlights the powerful leverage the federal government holds through its extensive research funding—a critical lifeblood for top US universities—and signifies a major policy victory for the Trump Administration in its efforts to reshape the cultural and procedural landscape of higher education.