Cornell University to pay $60M in deal with Trump administration to restore federal funding

The university agreed to pay $30 million directly to the U.S. government along with another $30 million toward research that will support U.S. farmers.

The agreement is the latest struck between President Donald Trump's administration and elite colleges he has accused of tolerating antisemitism and promoting far-left ideas. Trump is still locked in a standoff with Harvard, the nation's oldest and wealthiest university, and lately has tried an incentive-based approach by offering preferential access to federal funding for other schools that sign onto his political agenda.

Kotlikoff said the agreement revives the campus’ partnership with the federal government “while affirming the university’s commitment to the principles of academic freedom, independence, and institutional autonomy that, from our founding, have been integral to our excellence.”

The six-page agreement is similar to one signed by the University of Virginia last month. It’s shorter and less prescriptive than others signed by Columbia University and Brown University.

It requires Cornell to comply with the government’s interpretation of civil rights laws on issues involving antisemitism, racial discrimination and transgender issues. A Justice Department memo that orders colleges to abandon diversity, equity and inclusion programs and transgender-friendly policies will be used as a training resource for Cornell's faculty and staff.

The campus must also provide a wealth of admissions data that the government has separately sought from campuses to ensure race is no longer being considered as a factor in admissions decisions. Trump has suggested some campuses are ignoring a 2023 Supreme Court decision ending affirmative action in admissions.

Education Secretary Linda McMahon called it a transformative commitment that puts a focus on “merit, rigor, and truth-seeking.”

“These reforms are a huge win in the fight to restore excellence to American higher education and make our schools the greatest in the world,” McMahon said on X.

Attorney General Pam Bondi said the agreement illustrates the value for colleges that work with the administration. Colleges that receive federal funding “must fully adhere to federal civil rights laws and ensure that harmful DEI policies do not discriminate against students,” Bondi said in a statement.

Cornell’s president must personally certify compliance with the agreement each quarter. The deal is effective through the end of 2028.

It appears to split the difference on a contentious issue colleges have grappled with as they negotiate an exit from federal scrutiny: payments made directly to the government. Columbia agreed to pay $200 million directly to the government, while Brown University reached an agreement to pay $50 million to state workforce organizations. Virginia’s deal included no payment at all.

The agriculture investment will be made over three years, aimed at programs that incorporate artificial intelligence and robotics with the goal of supporting research that reduces costs for U.S. farmers. Founded as a land-grant school, Cornell has longstanding ties with American agriculture.

Kotlikoff was among hundreds of university presidents who signed an April letter opposing “unprecedented government overreach and political interference” from the Trump administration.

Kotlikoff emphasized that Cornell was not found in violation of federal law and said the agreement will preserve the campus' independence. “In short, it recognizes our rights, as a private university, to define the conditions on our campuses that advance learning and produce new knowledge,” he wrote.

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