In summary
In their approach to higher education, Trump and Newsom shared one thing in common this year: reducing funding for colleges and universities. The federal government pulled back research funds while the state, facing a deficit, imposed austerity measures on the UC and Cal State University systems.
Money is power. If California’s public colleges and universities didn’t already know that, they certainly learned it this year.
Though the U.S. Department of Justice launched numerous high-profile complaints against California schools — allegations of antisemitism at University of California campuses and concerns about a transgender athlete at San Jose State, to name a few — the most punishing consequences came from federal funding cuts. In its crusade to eliminate diversity, equity and inclusion programs, the Trump administration cut funding for UC campuses, including research into dementia, coronavirus vaccines and HIV prevention.
UCLA bore the brunt of Trump’s ire. The Trump administration withheld over $500 million in UCLA research grants this year because of allegations that the campus wasn’t addressing antisemitism related to protests over the war in Gaza. The administration then demanded that UCLA pay a $1.2 billion settlement and forego certain academic freedoms in order to get the money back. In separate lawsuits, a U.S. district judge ordered the Trump administration to stop withholding funds and later said the proposed settlement was “coercive and retaliatory.”
It’s just one of several court rulings ordering the Trump administration to return research money to UCLA or other UC campuses.
But the bulk of funding for California’s public colleges and universities comes from the state, not the federal government. After years where the state’s higher education system benefitted from a state surplus or was spared from budget cuts, 2025 proved different.
Both the UC and the California State University system saw 3% reductions in funding this year, though the community college system emerged largely unscathed. Facing particularly severe cuts, Sonoma State tried to cut majors, such as economics and physics, and to slash its competitive athletic programs, only for a judge to halt many of the cuts.
Looking ahead
Many of the court rulings issued this year were preliminary injunctions, meaning they’re temporary decisions until a final ruling occurs. That means many of the research grants could once again disappear.
The Trump administration is also going after students without legal status, who have for decades been able to receive state financial aid and to pay in-state tuition at public universities. A November lawsuit could put an end to those financial aid programs, affecting as many as 100,000 students across the state.
For the community college system, which educates the majority of students in California, the economy is often a key indicator in enrollment. If tariffs, a bursting tech bubble or other economic headwinds hit the state, students could return to college en masse, just like they did during the 2008 financial crisis.
