Northwestern University, one of America’s most prestigious private research institutions, has agreed to pay a $75 million settlement to the Trump administration in a move that will unfreeze nearly $790 million in federal funding. The deal, announced on November 29, 2025, comes after months of mounting pressure from federal agencies investigating allegations of antisemitism and other civil rights violations on campus, particularly in the wake of pro-Palestinian protests related to Israel’s war in Gaza.
The agreement, which was publicly confirmed by both the Department of Justice and Northwestern officials, marks a significant chapter in the Trump administration’s broader campaign against what it has termed “woke” university policies. Northwestern, based in Evanston, Illinois, was among 60 universities targeted by the administration earlier this year, accused of failing to adequately protect Jewish students and uphold federal anti-discrimination laws. In April, the Education Department froze more than three-quarters of a billion dollars in federal grants and contracts, putting the university’s research and educational programs at risk.
“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,” Attorney General Pam Bondi stated, according to the Chicago Sun-Times. “Institutions that accept federal funds are obligated to follow civil rights law—we are grateful to Northwestern for negotiating this historic deal.”
Under the terms of the settlement, Northwestern is required to adhere strictly to federal anti-discrimination statutes. The university must implement mandatory antisemitism training for all students, faculty, and staff, and establish clear, concrete guidelines for campus protests and other expressive activities. The agreement also demands greater transparency around the university’s financial commitments and a rollback of previously promised support for certain student groups, including those identifying as Muslim, Middle Eastern, North African, or Palestinian.
Title IX compliance is another central provision. The university must guarantee single-sex housing accommodations for women and enforce a ban on transgender women’s participation in female sports and access to female sporting facilities. Additionally, Northwestern has agreed to review and update its international admissions criteria and develop training programs to help international students better understand campus norms around open debate and inquiry.
In a message to the school community, interim President Henry Bienen emphasized that the settlement was made “based on institutional values” and not as an admission of guilt. “I would not have signed anything that would have given the federal government any say in who we hire, what they teach, who we admit or what they study,” Bienen declared in a video statement, as reported by The Daily Northwestern. “Put simply, Northwestern runs Northwestern.”
The financial implications of the settlement are considerable, but the university’s leadership argued that the cost of a protracted legal battle would have been even greater. “The cost of a legal fight was too high and the risks too grave,” the university posted in an explainer on its website. The $75 million fine, to be paid in increments through 2028, is the second-largest such penalty imposed on a U.S. university in recent years, surpassed only by Columbia University’s $200 million settlement in July 2025. Cornell University, another Ivy League institution, agreed to a $60 million payout earlier in November to resolve similar allegations and unfreeze $250 million in federal funds.
The Departments of Justice, Education, and Health and Human Services will now cease all ongoing investigations into Northwestern, closing the chapter on a period of intense federal scrutiny. The university expects that some federal funding will resume within days and that the full $790 million will be restored within 30 days, according to Bienen. The settlement also ensures Northwestern’s continued eligibility for future federal grants, contracts, and awards.
Education Secretary Linda McMahon praised the agreement as “a huge win” for both the Northwestern community and higher education nationwide. “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,” she said in a statement. Justice Department officials echoed this sentiment, with Assistant Attorney General Harmeet K. Dhillon noting, “Universities that receive federal funding have a responsibility to comply with the law, including protecting against racial discrimination and antisemitism. 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.”
The settlement also calls for the formation of a special committee within Northwestern’s Board of Trustees. This committee will oversee compliance with the agreement and federal laws, particularly those protecting women’s access to single-sex spaces and ensuring merit-based hiring and admissions practices.
The backdrop to this settlement is a period of heightened tension and activism on U.S. college campuses. Northwestern, like many of its peers, has faced student protests over its response to the Israel-Gaza conflict. Former university president Michael Schill, who resigned in September, testified before Congress about his administration’s handling of these demonstrations. He defended his decision to negotiate with student protesters but maintained a firm stance against allowing encampments to persist or divesting from companies supporting Israel, as some activists had demanded.
Northwestern’s fine and policy changes are part of a broader trend. Since the beginning of President Trump’s second term, the administration has paused more than $4 billion in federal education funding to various universities, as reported by multiple outlets. Brown University and the University of Pennsylvania have also reached agreements to resolve federal investigations, with the latter agreeing to change records related to a transgender swimmer.
For Northwestern, the settlement brings relief but also signals a new era of oversight and compliance. The university’s leadership is keen to move forward. “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,” Bienen wrote. “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.”
With federal funding set to flow once more, the university’s research into life-saving technologies—such as the world’s smallest pacemaker and Alzheimer’s treatments—can continue. Yet, the settlement’s impact will likely echo across higher education, as universities nationwide take note of the new expectations and the high stakes of federal compliance in a politically charged climate.
