University of California Sues Trump Administration Over Federal Funding Freeze

The University of California (UC) system, joined by labor unions, faculty, and students, filed a lawsuit against the Trump administration on Tuesday, accusing it of unlawfully freezing federal funds and undermining academic freedom, diversity programs, and free expression on campuses.

The suit, lodged in the U.S. District Court for the Northern District of California, seeks to block the government from using financial threats against higher education institutions and demands the restoration of suspended funding.

In a joint statement, the coalition behind the lawsuit said the administration had pursued “a playbook to threaten colleges and universities,” targeting them over their curricula, diversity and equity initiatives, and campus activism. Neither the UC system nor the White House offered immediate comment.

The legal challenge follows a series of federal investigations into universities’ handling of alleged antisemitism during student protests over Israel’s assault on Gaza. The administration has also tied funding freezes to climate initiatives and diversity, equity, and inclusion (DEI) programs. Critics argue the actions represent an effort to reshape universities to fit political objectives, posing a direct threat to academic independence.

The UC system, one of the largest in the nation, includes 10 campuses, nearly 300,000 students, and 265,000 faculty and staff. It receives more than $17 billion annually in federal support, according to UC President James Milliken, who warned this week that the institution faces one of the “gravest threats” in its history.

The dispute escalated earlier this year when the administration proposed that UCLA settle a federal probe with a $1 billion payment, a move California Governor Gavin Newsom condemned as an “extortion attempt.” In August, UCLA reported that $584 million in federal funding had been frozen, though a court later ordered some of the money restored. UC Berkeley confirmed it had handed over information on 160 faculty members and students as part of an investigation.

Federal funding freezes have also hit other elite universities. Earlier this month, a judge ruled the administration unlawfully terminated more than $2 billion in grants to Harvard University. Similar probes have been settled with Columbia and Brown.

The administration’s actions are officially linked to concerns about antisemitism on campuses. But protest groups, including some Jewish organizations, argue the government is conflating criticism of Israel’s occupation of Palestinian territories with antisemitism, while overlooking rising incidents of Islamophobia and anti-Arab bias tied to the Middle East conflict.

The UC lawsuit marks the latest legal challenge to the administration’s higher education policy, setting up a prolonged battle over the balance between federal oversight and academic freedom.