UCLA Faces $1 Bil. Settlement Demand from Trump
By Reuters | 08 Aug, 2025

On the pretext that allowing pro-Palestine demonstrations was akin to antisemitism, Trump demands UCLA pay $1 billion settlement to unblock hundreds of millions worth of federal funding.

Law enforcement officers stand guard at the University of California Los Angeles (UCLA), during a pro-Palestinian protest, as the conflict between Israel and the Palestinian Islamist group Hamas continues, in Los Angeles, California, U.S., May 2, 2024. REUTERS/Mike Blake/File Photo

The University of California said on Friday it was reviewing a $1 billion settlement offer by President Donald Trump's administration for UCLA after the government froze hundreds of millions of dollars in funding over pro-Palestinian protests.

UCLA, which is part of the University of California system, said this week the government froze $584 million in federal funding. 

Trump has threatened to cut federal funds for universities over pro-Palestinian student protests against U.S. ally Israel's war in Gaza. The government alleges universities, including UCLA, allowed antisemitism during the protests, while some faculty groups have sued saying the cuts have chilled free speech.

Large demonstrations took place at UCLA last year. Protesters, including some Jewish groups, say the government wrongly equates their criticism of Israel's military assault in Gaza and its occupation of Palestinian territories with antisemitism, and their advocacy for Palestinian rights with support for extremism.

"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, adding the institution offered to have talks earlier this week with the government.

Last week, UCLA agreed to pay over $6 million to settle a lawsuit by some students and a professor who alleged antisemitism. It was also sued this year over a 2024 violent mob attack on pro-Palestinian protesters.

Last month, the government settled its probes with Columbia University, which agreed to pay over $220 million, and Brown University, which said it will pay $50 million. Both institutions accepted certain government demands. Talks to settle with Harvard University are ongoing.

The $1 billion settlement offer for UCLA marks an unusually high amount. The White House had no immediate comment.

Experts have raised concerns about the government's federal funding threats to universities, saying they amount to an assault on free speech and academic freedom. The government has also attempted to deport some international students, over which civil rights groups have raised due process concerns. 

Rights advocates note a rise in antisemitism, anti-Arab bias and Islamophobia due to the conflict in the Middle East. The Trump administration has not announced equivalent probes into Islamophobia.

(Reporting by Kanishka Singh in Washington; Editing by Aurora Ellis)