Trump Admin Agrees Not To Use Federal Funding To 'Coerce' California Universities

The government will have to follow proper procedures to revoke funding from schools found in violation of civil rights laws.

Published on Feb. 17, 2026

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The Trump administration has reached an agreement with the University of California, Los Angeles (UCLA) that requires the government to retract its $1.2 billion demand and restore millions in federal funding. The agreement also states the government can no longer use federal funding to 'coerce' the university into compliance and must follow proper procedures to revoke funding in the future if the university is found in violation of civil rights laws.

Why it matters

This case highlights the ongoing tensions between the federal government and universities over issues of free speech, diversity, and civil rights compliance. The agreement sets new guidelines for how the government can withhold funding from schools, limiting its ability to use financial pressure to force ideological changes.

The details

The Trump administration had previously revoked $584 million in federal funding from UCLA and proposed a $1 billion resolution agreement in 2025 over accusations of rampant antisemitism and race-based admissions policies. The new agreement requires the government to follow a clear set of steps before revoking funding, including declaring a violation, attempting to reach a voluntary agreement, providing notice and a hearing, and going through the proper legislative process.

  • In November 2025, a court claimed the funding cuts and resolution price tag were a political move 'with the goal of bringing universities to their knees and forcing them to change their ideological tune.'
  • In January 2026, the Department of Justice filed a motion to join a class action lawsuit against UCLA's medical school over similar racial discrimination accusations.
  • After the start of the Israel-Hamas war on Oct. 7, 2023, UCLA allowed massive demonstrations to persist on campus, including a 'Jew Exclusion Zone,' which it has since settled a lawsuit over to the tune of nearly $6.5 million.

The players

Trump Administration

The federal government under the Trump presidency.

University of California, Los Angeles (UCLA)

A public research university in Los Angeles, California that was the target of the Trump administration's funding threats.

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What’s next

The Trump administration can still propose 'voluntary resolution' agreements to resolve investigations or lawsuits against UCLA, but it must follow the proper procedures outlined in the agreement before revoking any federal funding.

The takeaway

This case highlights the ongoing tensions between the federal government and universities over issues of free speech, diversity, and civil rights compliance. The new agreement sets important limits on the government's ability to use financial pressure to force ideological changes at universities, requiring a more transparent and procedural approach.