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U.S. News
09 November 2025

Cornell Restores Federal Funds After Historic Settlement

The Ivy League university agrees to new oversight and climate surveys as it regains $250 million in research funding, navigating political scrutiny and civil rights concerns.

In a landmark agreement announced on November 8, 2025, Cornell University and the Trump administration reached a settlement that restores over $250 million in federal research funding to the Ivy League institution. This resolution marks the end of a tense standoff that had threatened the university’s research programs and underscored the growing complexities of federal oversight in American higher education.

The dispute began earlier in 2025 when the Trump administration withheld $250 million in federal funds from Cornell, citing alleged failures to adequately address campus antisemitism. According to Jewish Insider, the administration’s concerns centered on whether Cornell was upholding its responsibilities under Title VI of the Civil Rights Act of 1964, which prohibits discrimination based on race, color, or national origin in institutions receiving federal assistance. The funding freeze sent shockwaves through the academic world, spotlighting the delicate balance between university autonomy and government accountability.

Under the terms of the six-page settlement, Cornell agreed to several significant measures. Most notably, the university will conduct annual surveys to evaluate the campus climate for students, including those with shared Jewish ancestry. These surveys will ask students whether they feel welcome at Cornell, whether they feel safe reporting antisemitism, and whether they believe the changes implemented since October 2023 have benefited the community. The results are intended to provide ongoing feedback and ensure that the university continues to foster an inclusive environment for all students.

Financially, the agreement is substantial. Cornell will pay a total of $60 million, with $30 million going directly to the government over three years and another $30 million earmarked for research supporting U.S. farmers. As reported by Jewish Insider, this dual approach not only resolves pending claims but also reinforces the university’s commitment to advancing American agriculture—a sector often at the heart of federal research priorities.

Beyond the financial terms, the settlement imposes new compliance requirements. Cornell must provide detailed admissions data to the government, broken down by individual colleges, race, GPA, and standardized test scores. This measure is designed to ensure that race is not considered a factor in admissions, reflecting recent national debates and legal challenges over affirmative action and diversity initiatives in higher education. Additionally, staff training aligned with federal guidance on diversity, equity, and inclusion (DEI) programs is now mandated, signaling a new era of federal involvement in university DEI practices.

Crucially, the federal government concluded that Cornell is not in violation of Title VI, and it has closed the relevant investigations. The agreement also includes a clear affirmation of academic freedom. Both parties agreed that the settlement cannot be construed as giving the United States authority to dictate the content of academic speech or curricula. This provision, highlighted in the settlement, was designed to reassure faculty and students that intellectual independence would not be compromised by federal oversight.

"I am pleased that our good faith discussions with the White House, Department of Justice, and Department of Education have concluded with an agreement that acknowledges the government’s commitment to enforce existing anti-discrimination law, while protecting our academic freedom and institutional independence," Cornell President Michael Kotlikoff told Jewish Insider after the settlement was finalized. He added, "These discussions have now yielded a result that will enable us to return to our teaching and research in restored partnership with federal agencies."

The settlement comes at a turbulent time for Cornell. In the wake of the October 7, 2023 attacks in Israel, the university faced several high-profile incidents, including a student’s online threats to shoot Jewish students at the kosher dining hall. The return of Russell Rickford, an associate professor of history who called the October 7 attacks “exhilarating” and “energizing,” further intensified scrutiny. In May 2024, then-president Martha Pollack issued a set of recommendations aimed at countering antisemitism, but she resigned just two months later, citing “enormous, unexpected challenges” on campus related to the Israel-Hamas war.

The political and cultural context of the settlement is impossible to ignore. The agreement is part of a broader trend among elite universities—such as Columbia, Brown, the University of Pennsylvania, and the University of Virginia—who have also reached settlements with the federal government in recent months. According to Jewish Insider and other outlets, these deals reflect a pragmatic approach: Rather than engaging in protracted litigation, institutions are negotiating to secure research continuity while adapting to evolving federal expectations.

The settlement also arrives as Cornell’s graduate student union considers a Boycott, Divestment, and Sanctions (BDS) resolution. The resolution accuses Jewish students of “weaponizing antisemitism” and blames labor disputes on “Zionist interests,” a move that has sparked heated debate on campus. Unlike many other unions, Cornell’s graduate student union requires mandatory dues, further fueling controversy and illustrating the intersection of campus politics and broader societal debates.

Menachem Rosensaft, an adjunct professor at Cornell Law School who teaches about antisemitism in the courts, called the settlement a “significant victory for Cornell.” In an interview with Jewish Insider, he said, “It is proof that the Cornell administration under President Kotlikoff has in fact been doing—and is doing—everything in its power, and everything that is appropriate within the restraints posed by academic freedom, to protect its Jewish students, faculty, and staff against any type of antisemitic discrimination, just as it is protecting all members of the Cornell community from Title VI or Title IX based discrimination.” Rosensaft emphasized the ongoing nature of the fight against antisemitism, noting, “Of course there remains work to be done to fight against antisemitic manifestations at Cornell, just as there is at virtually every university and college in this country. But the settlement is proof that Kotlikoff and his administration are fully invested and engaged in this fight.”

Looking beyond the immediate implications for Cornell, the settlement raises fundamental questions about the future of American higher education. As Jewish Insider and other sources have noted, the deal highlights the tension between maintaining institutional independence and meeting federal accountability standards. The conditions attached to the restored funding—particularly those involving DEI programs and admissions transparency—signal a shift in how universities must operate in an era of heightened political scrutiny and social division.

For other elite institutions, Cornell’s experience offers a potential blueprint for navigating similar challenges. By choosing negotiation over litigation, the university has demonstrated a model of strategic pragmatism—one that prioritizes research continuity and operational stability while responding to external demands. As the relationship between federal authorities and universities continues to evolve, the Cornell settlement may well shape how American higher education balances innovation, autonomy, and oversight in the years ahead.

The story of Cornell’s settlement is more than a tale of dollars and regulations; it’s a window into the shifting landscape of academic freedom, civil rights, and political accountability. As universities nationwide watch closely, the outcome in Ithaca could set the tone for how higher education adapts to a world where funding, inclusion, and independence are increasingly intertwined.