Thu. Aug 14th, 2025
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Aug. 9 (UPI) — The U.S. Justice Department is asking for $1 billion from the University of California, Los Angeles in exchange for re-starting federal funding to the public land-grant research institution, school officials confirmed.

“The University of California just received a document from the Department of Justice and is reviewing it,” University of California President James Milliken said in a statement this week.

“As a public university, we are stewards of taxpayer resources and a payment of this scale would completely devastate our country’s greatest public university system as well as inflict great harm on our students and all Californians.”

Earlier this week, UCLA announced it had lost millions in federal research funding after the Justice Department accused it of failing to protect Jewish students during on-campus pro-Palestinian protests. The school at the time did not specify a dollar amount, but that figure is now believed to be around $500 million.

“The UC Board of Regents and the UC Office of the President are providing counsel as we actively evaluate our best course of action. I will continue to be in constant communication with you on key decisions and update you on any developments,” UCLA Chancellor Julio Frenk said following Milliken’s statement.

The deal offered by President Donald Trump‘s administration to the 106-year-old academic institution would involve the school making a $1 billion payment. It would also pay an additional $172 million which would go to a larger fund to compensate victims of civil rights violations, the New York Times reported, citing a draft of the proposal.

Gov. Gavin Newsom, D-Calif., said the state would push back against the proposed settlement.

“We’ll sue,” Newsom told reporters at a news conference Friday when asked about the news. Newsom had been discussing California’s involvement with Texas lawmakers who are trying to block a Republican redistricting plan in the Lone Star state.

“[Trump] is trying to silence academic freedom,” Newsom said, “attacking one of the most important public institutions in the United States of America.”

Columbia University last month agreed to pay $221 million in fines to settle similar accusations against the private New York City university.

At the time, Trump said he also expected to reach a settlement with Harvard University.

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