The Trump administration has implemented a significant policy shift affecting higher education, concentrating on the disclosure of race-related admissions data and the suspension of federal grants to universities. This strategy is part of a broader initiative to dismantle affirmative action and diversity, equity, and inclusion (DEI) initiatives within academic institutions. On August 7, 2025, President Donald Trump signed an executive order requiring universities to disclose admissions data concerning race, aiming to ensure race is not a factor in admissions decisions. This directive follows the Supreme Court's 2023 ruling that prohibited affirmative action but permitted the consideration of race's impact through personal essays. The administration asserts that colleges continue to utilize indirect methods for considering race in admissions.
In parallel actions, the administration has enacted substantial financial measures against universities. The University of California, Los Angeles (UCLA) experienced a suspension of $584 million in federal grants, with the Department of Justice citing allegations of civil rights violations related to antisemitism and the creation of a hostile educational environment for Jewish and Israeli students. This action represents the most severe funding cut in UCLA's history, impacting its research and educational programs. Stanford University has also faced financial challenges, resulting in the layoff of over 360 employees. The university attributes these budget constraints and layoffs to federal education funding policies, including potential endowment taxes and funding threats linked to campus stances on issues such as pro-Palestinian protests and DEI programs. Stanford anticipates a $140 million budget cut for the upcoming academic year due to these policy influences. The administration's actions also include investigations into more than 50 universities for alleged racial discrimination and DEI practices, prompting some institutions, like the University of Michigan, to proactively close their DEI offices. The broader implications of these federal policy changes are substantial, potentially reshaping university admissions, funding structures, and the overall campus environment. The administration's position, as stated by the Department of Justice, emphasizes that institutions receiving federal funds must not discriminate based on protected characteristics, viewing many DEI programs as unlawful proxies for race-based decision-making. These developments prompt critical questions regarding how universities will adapt to these new requirements, particularly in demonstrating compliance with the executive order and navigating the altered funding landscape. The administration's approach marks a notable departure in federal oversight of higher education, with tangible financial and operational consequences for institutions nationwide.