Northwestern University Pays $75M to Resolve Funding Dispute

Northwestern University has agreed to pay $75 million to the Trump administration to resolve an ongoing investigation into antisemitism, which had resulted in the freezing of nearly $790 million in federal funding. This agreement marks one of the largest settlements of its kind, aimed at restoring the university’s access to essential financial resources.

The deal, announced just after Thanksgiving, will last for three years and requires Northwestern to abandon its previous commitments made with pro-Palestinian protesters. These commitments included provisions for designated spaces on campus for Muslim and North African students.

In a statement from Henry Bienen, the university’s interim president, officials explained, “The cost of a legal fight was too high and the risks too grave.” Bienen emphasized that the frozen funds posed significant risks to the university’s research capabilities and faculty retention. The university’s overarching goal, he added, is to preserve its institution and facilitate life-saving research.

Linda McMahon, the U.S. Secretary of Education, hailed the agreement as a significant victory for current and future students, faculty, and alumni. She stated, “The deal cements policy changes that will protect students and other members of the campus from harassment and discrimination.”

This settlement positions Northwestern as the sixth university to reach an agreement with the Trump administration regarding similar investigations, with its payout being second only to Columbia University’s $221 million settlement. The Trump administration has been actively pressuring other institutions, including Harvard University and UCLA, to follow suit.

Critics have raised concerns about the implications of such agreements, describing them as coercive and questioning their effectiveness in addressing antisemitism while potentially undermining academic freedom. In response to these allegations, Bienen asserted, “Northwestern runs Northwestern,” maintaining that the university operates independently.

Unique to Northwestern’s agreement is the cancellation of the “Deering Meadow agreement,” which had been established in 2024 to peacefully resolve a pro-Palestinian encampment on campus without police involvement. Former president Michael Schill, who is Jewish, faced backlash from various groups, including some Jewish staff and notable alumni like Jonathan Greenblatt, for what they perceived as capitulating to antisemitism.

As a result of the new agreement, Northwestern has withdrawn its commitment to providing temporary housing for Muslim and North African students, as well as the promise of constructing a permanent space for these groups.

Responses from student organizations involved in the pro-Palestinian protests have yet to be publicly articulated. A request for comment from the university’s chapter of Jewish Voice for Peace, which participated in the coalition behind the now-defunct Deering Meadow Agreement, went unanswered.

Several Jewish advocacy organizations, including the Chicago Jewish Alliance and the Coalition Against Antisemitism at Northwestern, have expressed support for the settlement. CAAN, which comprises mainly alumni and collaborates with organizations such as Northwestern Hillel and Chabad, thanked federal authorities for their commitment to safeguarding Jewish students and faculty.

Under the terms of the new agreement, Northwestern will conduct a climate survey similar to those that have previously highlighted antisemitism concerns on other campuses. The agreement also reaffirms existing policies aimed at preventing harassment and discrimination against Jewish students, including restrictions on protest activities and on-campus demonstrations.

The university has implemented various measures over the past two years to enhance the campus environment, including new training initiatives and improved reporting systems for incidents involving antisemitism. According to the university’s FAQ page, these efforts have resulted in a significant decline in such incidents.

Despite these measures, tensions surrounding antisemitism persist on campus. Recently, a group of incoming students opted not to participate in mandatory antisemitism training, labeling the program as “unscholarly” and “morally harmful.” These students faced enrollment blocks following a federal court order.

As Northwestern University navigates these complex issues, the outcomes of this agreement will likely have lasting implications for its community and its approach to fostering an inclusive campus environment.