On August 7, 2025, the Trump administration issued an executive order requiring universities to disclose admissions data disaggregated by race. This directive is part of a broader strategy to dismantle affirmative action and Diversity, Equity, and Inclusion (DEI) initiatives in higher education. The administration contends that colleges continue to employ race-conscious admissions practices, even after the Supreme Court's 2023 decision outlawed affirmative action, through indirect means such as personal essays. Concurrently, the Department of Justice has suspended $584 million in federal grants to the University of California, Los Angeles (UCLA), citing allegations of civil rights violations related to antisemitism and the creation of a hostile educational environment for Jewish and Israeli students.
Stanford University has also experienced significant financial repercussions, implementing layoffs for over 360 employees. The university attributes these budget constraints and workforce reductions to federal education funding policies, specifically citing a $140 million budget cut for the upcoming year. Stanford indicated that federal actions reportedly penalize institutions supporting certain social and political stances, including climate initiatives, transgender rights, and DEI programs. These developments underscore the tangible financial and operational impacts universities face due to the administration's policy shifts. The Supreme Court's 2023 ruling, which declared race-conscious admissions unconstitutional, followed decades of legal challenges and evolving interpretations of affirmative action, policies originating in the 1960s to increase opportunities for historically disadvantaged groups. These actions prompt critical questions about university compliance with new data disclosure requirements and their navigation of resulting budget pressures, signaling a significant policy shift impacting admissions, funding, and campus environments.