Penn & USC Reject Trump’s Higher Ed Compact

by Ahmed Ibrahim

Elite universities Reject Trump AdministrationS “Academic Excellence” Compact

A growing number of leading universities are publicly declining to sign a controversial agreement proposed by the Trump administration, raising concerns about academic freedom and potential federal funding repercussions.

Four of the nine universities initially asked to sign the “Compact for Academic Excellence in Higher Education” have now rejected the document,signaling important resistance to the proposal. The Universities of Pennsylvania and Southern California joined Brown University and the Massachusetts Institute of Technology in publicly refusing to commit to the compact’s terms. As of today, no institution has agreed to sign.

The announcements from USC and Penn came on Thursday, just days before the October 20 deadline for providing feedback on the proposal. Beong-Soo Kim, interim president of the University of Southern California, communicated his concerns to education Secretary Linda McMahon, noting that USC already lauds itself for its commitment to free expression and academic inquiry. He warned that signing the compact could “instantly” lose billions of dollars in state funding.

At the University of Pennsylvania, President J. Larry Jameson stated Thursday that his university “respectfully declines to sign the proposed Compact,” while confirming that feedback on the proposal had been submitted to the department. Penn spokespeople did not indicate whether the university would reconsider an amended version of the compact addressing their concerns, nor did they share the submitted feedback with Inside Higher Ed.

The White House has also remained tight-lipped regarding specific feedback, but issued a statement that appeared to threaten funding cuts for universities that do not sign. “Merit should be the primary criteria for federal grant funding,” stated a spokesperson, Liz Huston.”Too many universities have abandoned academic excellence in favor of divisive and destructive efforts such as ‘diversity, equity, and inclusion.’ The Compact for Academic Excellence embraces universities that reform their institutions to elevate common sense once again, ushering a new era of American innovation.Any higher education institution unwilling to assume accountability and confront these overdue and necessary reforms will find itself without future government and taxpayers support.”

The compact itself is described as a “boilerplate contract” requiring colleges to voluntarily overhaul or abolish departments that “purposefully punish, belittle, and even spark violence against conservative ideas,” a definition critics argue is vague and open to interpretation.It also includes stipulations such as refusing to recognize transgender women as women, rejecting foreign applicants deemed unfriendly to the United States, and freezing tuition rates for American students for five years.

In exchange for compliance, the White House has suggested that signatories would receive “funding priority” and invitations to collaborate with the administration. However, the specific financial benefits remain undefined within the nine-page compact, and the document-along with the White House statement-can be interpreted as a threat to existing federal funding. Multiple higher education organizations have united in urging universities to reject the compact.

Jameson affirmed Penn’s commitment to “merit-based achievement and accountability” in his statement.

The Trump administration previously accused Penn of violating title IX in 2022 by allowing a transgender woman to compete on the women’s swimming team, issuing several demands to the university. Penn ultimately conceded to those demands,a decision the administration credited with restoring approximately $175 million in frozen federal funds.

Marc Rowan, a Penn alumnus and current CEO and board chair of Apollo Global Management, revealed in The New York Times that he “played a part in the compact’s initial formulation, working alongside an administration working group.” Rowan maintains that the compact does not jeopardize free speech or academic freedom.

Notably, apollo Global Management has significant financial ties to the for-profit University of Phoenix. AP VIII Queso Holdings LP, formerly the majority owner of the University of Phoenix, was a successor to Apollo Education Group, wich became private in 2017 through a $1.1 billion deal backed by Apollo Global Management Inc. and the Vistria Group. Recently renamed Phoenix Education Partners, the company went public last week and was valued at approximately $1.35 billion after its first day of trading.This connection raises questions about potential conflicts of interest and the motivations behind the compact’s growth.

The unfolding situation underscores a growing tension between the Trump administration and higher education institutions, with the future of federal funding potentially hanging in the balance.

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