Universities Reject a Federal Funding Compact

Starting in October 2025 the White House has proposed the Compact for Academic Excellence in Higher Education. The document was sent to nine universities on October 1 and it promises preferential federal funding for campuses that adopt specific policies. These policies include a five-year tuition freeze, a cap on international undergraduate students at 15 percent, mandatory standardized tests for admissions, and measures to promote conservative viewpoints. Legal scholars have raised constitutional questions and academic groups have criticized the plan.

Several leading universities have reviewed the compact and have chosen to refuse it. MIT formally rejected the offer on October 10, and Brown declined on October 15. The University of Pennsylvania and the University of Southern California notified the Department of Education on October 16, while the University of Virginia followed on October 17. Faculty, students, and professional associations have provided feedback and urged leaders to protect academic freedom. The White House asked institutions for comments by October 20; however no school has signed the compact so far. Therefore many observers say this episode could mark a notable moment in the relationship between the federal government and higher education.