Columbia likely to crack $200 million deal with Trump admin to unlock frozen funds: Report

The potential deal would resolve the suspension of approximately $400 million in federal grants.

Columbia University, the high-profile target in US President Donald Trump’s federal funding crackdown, is now reportedly on the brink of a deal with the US administration that would restore its government support.

If the deal goes through, Columbia University would regain some $400 million in federal grants. (REUTERS)

According to a New York Times report, the Ivy League school could pay out as much as $200 million to settle the matter with the Trump administration. The move is expected to unlock the return of nearly double that amount in frozen federal funding.

The potential deal would resolve the suspension of approximately $400 million in federal grants and contracts that were stripped earlier this year. The funding was pulled over concerns related to the university’s handling of discrimination and campus safety for Jewish students.

The deal would require Columbia to pay the amount to those affected by the alleged violations, increase transparency in its hiring and admissions processes, and take other steps to improve security and safety on campus for Jewish students, the Washington Free Beacon and Wall Street Journal reported.

In return, the university would regain some $400 million in federal grants and contracts that the administration cut in March.

However, the deal does not include some of the stricter provisions initially demanded by the White House, such as a consent decree and reforms to Columbia’s governance structure, the outlets reported.

The White House also dropped demands that a presidential search committee to replace interim university president Claire Shipman include people with a variety of political views, the Free Beacon reported

If finalised, the agreement would be a reversal for Columbia and a massive win for the Trump administration, which has aggressively pursued investigations into elite universities over alleged civil rights violations.

A university spokesperson confirmed ongoing talks with federal officials but emphasised that no final resolution has been reached.

Trump's action against Columbia University

In March this year, US President Donald Trump had cut around $400 million worth of federal grants and aid to the university, citing its alleged failure to protect Jewish students from harassment during the protests over Israel's war in Gaza.

The University was rocked by anti-war protests in April last year, leading to dozens of arrests. Later, Columbia University acknowledged antisemitism concerns.

The US government further said that the $400 million cut would be followed by additional cuts of $5 billion in federal funding commitments to the university.