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Trump's Funding Compact
Are international students being pushed out of US Academia?
Tabarak Rehman
October 17, 2025
On October 1, 2025, the Trump administration issued letters to nine US universities under what they called ‘The Compact for Academic Excellence in Higher Education’. These letters, which asked universities to comply with a series of outlined demands, were issued to the following academic institutions:
Brown University
Dartmouth College
Vanderbilt University
University of Virginia
University of Arizona
University of Pennsylvania
University of Southern California
University of Texas at Austin (UT Austin)
Massachusetts Institute of Technology (MIT)
This government-led move draws attention to the tension that exists between the worlds of US academia and politics, and begs the question:
To what extent should academia remain independent and free, and what, if any, involvement should government have in determining academic structuring?
So, what is the Funding Compact?
Major: universities that sign onto what is being called the Funding Compact get priority access to federal funding, including research grants and student loans. Those that don’t risk losing billions in federal aid
But what’s the catch?
According to the letter received by targeted universities, the compact strives for “the proactive improvement of higher education for the betterment of the country”
These are the asks it makes:
Limit International Student Enrollment
The compact calls for a 15% cap on international undergraduate enrollment. So for every 100 admitted students, only 15 can be internationals. Additionally, it also calls for enrollments from any single country to be capped at 5%
For institutions such as the University of Southern California, where international students make up 26.1% of the Fall 2025 Freshman class, this calls for a massive shift in student structuring
The Return of Standardized Testing
The compact states that all universities must make standardized testing - namely the SAT or ACT - a compulsory part of the undergraduate college application. This change, if adopted, will require institutions such as Vanderbilt University, the University of Virginia, and the University of Southern California to rescind their test-optional policies
Race and Gender Exit the Admissions Mix
The compact calls for factors such as race and gender to be disregarded in the admissions and hiring process. According to CNN reporting of the letter received by universities, this removal is in order to nurture a “vibrant marketplace of ideas on campus (with) no single ideology dominant, both along political and other relevant lines (and embrace understandings of gender) according to reproductive function and biological processes.”
The 5-Year Plan: Tuition Edition
Universities that sign the compact will be liable to undergo a mandatory five-year tuition freeze. That is, for the next five years, universities may not increase their tuition amounts
On the whole, US universities are used to raising tuition on a yearly basis. Following were the tuition increases for the academic year 2025-2026, according to U.S. News & World Report research:
Private colleges: 3.3%
Public schools: 3.3% for in-state students and 3.7% for out-of-state students
Tuition-free Science Degrees
The compact also calls for universities with endowments that exceed $2M per undergraduate student to offer tuition-free enrollment to individuals seeking degrees in hard science programs
So, what will Universities look like?
It comes as no surprise that international students are in the middle of this debate. If implemented, not only will the compact change campus environment, potentially stifling diversity and shrinking intercultural experiences, but it will also likely lead to increased competition as international students compete for limited admission slots
Students across the globe - both international and US-based - will also see a core addition in their highschool experience as standardized testing makes a return. The SAT and ACT, both of which test verbal and numerical aptitude, will have a significant impact as not only will students have an additional responsibility on their plate, but many will also see a financial hit with test fees
The upside? Should the compact be accepted, students interested in pursuing a career in the hard sciences may be looking at a tuition-free college education
Concerned about how the Funding Compact may impact you? Join our online session on Saturday to speak to an experienced PhD candidate about how best to navigate these uncertain times
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How are Universities Responding?
As of October 16, the University of Pennsylvania has become the third of the nine targetted institutions to reject the Trump administration’s funding compact. The remaining six have yet to respond
MIT became the first to reject the proposal, with president Sally Kornbluth stating that the compact would “restrict freedom of expression” and did not align with the university’s value system
MIT and UPenn were joined by Brown University, with university president Christina Paxson responding to the Trump government’s letter with, ”I am concerned that the compact by its nature and by various provisions would restrict academic freedom and undermine the autonomy of Brown’s governance, critically compromising our ability to fulfill our mission”
What’s Next?
Universities have till October 20 to issue a response to the compact. With many of these universities already having faced financial disputes with the Trump government, America’s educational future under the Trump reign remains uncertain
Additionally, as rejections to the compact have rolled in, there is noise that the government has extended the proposal to inlcude universities outside of the initially selected nine. How the landscape plays out will reveal itself in the next few days
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With new educational policies and restrictions on international students rising up day after day, it’s essential to know how to make the most of your time once you actually get to the US
This past week, we spoke to Sanjina Kumari (BS Computer Sciene & Economics, PLU) about how to strategize for success in the US. From the basics of housing and banking to the crucials of networking and building experience through opportunities, Sanjina shares how she did it - and how you can do it too
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Tabarak Rehman