California Governor Gavin Newsom has announced that any university in the state signing onto the White House’s proposed “Compact for Academic Excellence in Higher Education” will lose access to state funding, including Cal Grants. The statement comes after the federal proposal linked higher education funding to requirements described by Newsom as conservative ideological restrictions.
“IF ANY CALIFORNIA UNIVERSITY SIGNS THIS RADICAL AGREEMENT, THEY’LL LOSE BILLIONS IN STATE FUNDING — INCLUDING CAL GRANTS — INSTANTLY. CALIFORNIA WILL NOT BANKROLL SCHOOLS THAT SELL OUT THEIR STUDENTS, PROFESSORS, RESEARCHERS, AND SURRENDER ACADEMIC FREEDOM,” said Governor Gavin Newsom.
The proposed compact from President Donald Trump’s administration would set government-mandated definitions for academic terms and reduce campus leaders’ authority over their institutions. According to Newsom’s statement, the plan would require universities to adopt conservative principles and follow strict spending rules for their endowments. Institutions not complying could face large fines or lose federal research funding.
Governor Newsom’s announcement highlights a potential conflict between federal policy and California’s approach to academic governance and diversity in higher education.


