19 October, 2025
usc-faces-funding-crisis-amid-trump-newsom-showdown

UPDATE: A fierce funding battle has erupted involving the University of Southern California (USC), the Trump administration, and California Governor Gavin Newsom. This escalating conflict could drastically reshape campus life as we know it.

On October 2, 2023, Governor Newsom threatened to slash billions in state funding, including critical Cal Grants that support thousands of students, should California universities yield to pressures from the Trump administration. This ultimatum coincides with a controversial directive from the White House that demands USC and eight other major universities endorse President Trump’s views on issues like gender identity and diversity in exchange for priority access to federal funding.

The White House has proposed a “Compact for Academic Excellence in Higher Education,” pushing universities to adopt a conservative agenda regarding student discipline, college affordability, and gender definitions, which notably exclude transgender individuals from campus facilities and sports teams. The compact also imposes strict limits on international student enrollment, capping it at 15% of the undergraduate population—an alarming prospect for USC, where 26% of the upcoming freshman class comes from abroad.

Governor Newsom declared, “If any California university signs this radical agreement, they’ll lose billions in state funding— including Cal Grants—instantly.” He emphasized that “California will not bankroll schools that sell out their students, professors, researchers, and surrender academic freedom.” In 2024-25, over $2.5 billion in Cal Grants are expected to be distributed to California students, underscoring the stakes involved.

USC’s faculty has vehemently opposed Trump’s proposal, labeling it “antithetical to principles of academic freedom.” Despite this, interim President Beong-Soo Kim informed a crowd of approximately 500 attendees that no final decision has yet been made by the university. MIT recently rejected the proposal, but it remains unclear how the nine targeted schools were chosen.

Officials report that universities throughout Southern California, including USC and UCLA, are under pressure from the federal government, with funding for research and grants being withheld amid ongoing investigations into diversity and antisemitism. Observers note that the threats from Newsom might provide cover for universities like USC to resist the Trump administration more effectively.

As political tensions escalate, students and faculty are left wondering how the university will navigate this precarious situation. With the potential for significant funding cuts looming, the decisions made in the coming days will be crucial.

This developing story highlights the urgent intersection of education, politics, and student welfare, as both sides prepare for a showdown that could alter the landscape of higher education in California.

Stay tuned for updates on this critical issue impacting thousands of students and the future of USC.