Economic Update: Higher Education and Federal Compliance
The administration of US President Donald Trump has made a significant move by terminating nearly $400 million in scholarships and federal contracts awarded to Columbia University. This action stems from the university’s inadequate response to ongoing anti-Semitic harassment targeted at Jewish students, marking the first in a series of potential cancellations.
President Trump has stated that institutions of higher education failing to protect their students from anti-Semitic harassment risk losing federal funding. Currently, the joint task force working to combat anti-Semitism, which includes various American institutions, is reviewing additional cancellations, with Columbia University holding federal grant obligations exceeding $5 billion.
On March 3, Columbia University’s temporary advisory team announced a thorough review of its federal contracts and scholarships. This review follows investigations under Chapter Six of the Civil Rights Law; however, reports indicate the university has not adequately responded to the task force’s inquiries.
Linda McMahon, Minister of Education, highlighted the alarming situation stating, “Since October 7, Jewish students have encountered significant violence, intimidation, and anti-Semitic harassment on campus and have been neglected by those responsible for their protection.” She asserted that universities must adhere to federal anti-discrimination laws to remain eligible for federal funding, criticizing Columbia for failing to fulfill its obligations to Jewish students.
Leo Terril, a key adviser to the Assistant Attorney General for Civil Rights, reinforced the administration’s stance by declaring, “The cancellation of taxpayer funds signals that the federal government will not partner with educational institutions like Columbia that fail to safeguard their students and staff from anti-Semitism.”
The termination of Columbia’s grants and contracts serves as a definitive warning to all educational institutions relying on federal funds that the administration is prepared to take all necessary measures to protect Jewish students and address anti-Semitism on campuses nationwide.
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