What are Trump’s 10 New Rules for University Federal Funding? In October 2025, the Trump administration issued a 10-point memo with new rules that U.S. universities must follow to receive prioritized federal funding. These changes are designed to address rising education costs, ensure ideological diversity, and overhaul admissions processes nationwide.
According to the State Higher Education Executive Officers Association, public and private colleges are projected to receive $129 billion in state funding for 2025 alone. The new federal compact, sent to nine prominent universities, outlines significant policy shifts and compliance requirements. Learn about the new rules for University Federal Funding and what universities must change in admissions, tuition, and campus policies.
Trump’s 10 New Rules for University Federal Funding: What Colleges Must Do to Qualify?
These rules set clear benchmarks U.S. colleges must meet to receive or maintain federal funding, fundamentally shifting admission and financial aid policies.
| Rule No. | Rule | Description |
| 1 | Race-neutral Admissions | Universities must not consider race, gender, or ethnicity in admissions or faculty hiring decisions, moving to strictly merit-based selection. |
| 2 | Public Reporting | Colleges must publicly release anonymized admissions and test data sorted by demographic groups. |
| 3 | Standardized Testing | All students seeking admission must complete standardized entrance exams like the SAT. |
| 4 | International Student Cap | Institutions must cap international undergraduates at 15%, with no more than 5% foreign students from any single country. |
| 5 | Ideological Diversity | Universities must demonstrate a “vibrant marketplace of ideas,” avoiding ideological uniformity. |
| 6 | Tuition Freeze and Admin Cost Reductions | Tuition fees must be frozen for five years, and administrative expenses reduced. |
| 7 | Departments Abolishment | Departments “demeaning” or “inciting violence” against conservative perspectives must be abolished. |
| 8 | Graduate Outcome Transparency | Graduate earnings by program must be reported and shared publicly. |
| 9 | Endowment Requirement | Institutions with large endowments ($2 million+ per student) must provide free tuition for students in hard science fields. |
| 10 | Value Alignment Screening | Schools must screen foreign students for “alignment with American and Western values”. |
Universities Which Received “A Compact for Academic Excellence in Higher Education” Memo
The 9 Universities which received the “A Compact for Academic Excellence in Higher Education” Memo are as follows:
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University of Arizona
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Dartmouth College
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Massachusetts Institute of Technology (MIT)
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University of Pennsylvania
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University of Southern California
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University of Texas
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University of Virginia
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Vanderbilt University
The universities which comply and follow these rules will be rewarded with their University federal funding. Whereas, the universities which do not participate will lose their federal funding benefits.
What are Trump’s 10 New Rules’ Impacts?
These rules will reshape how U.S. colleges operate, affecting domestic and international students, campus diversity, and tuition affordability.
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Federal funding is vital, with top universities receiving up to 48% of their annual income from federal sources.
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International applications and enrollments are expected to decline due to the 15% cap. No more than 5% foreign students enrollment from any single country is allowed.
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Colleges that comply gain competitive access to research grants and other federal benefits.
Will All U.S. Colleges Be Affected?
Not all colleges are immediately required to sign the compact, but priority for federal funds and grants goes to those who comply. The policy first targets nine prominent universities, but it signals major change for all U.S. higher education. Noncompliant universities may face more delays or reduction in federal support.
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Conclusion
Trump’s 10 new rules for federal university funding introduce sweeping changes to U.S. higher education, affecting admissions, tuition, financial transparency, and campus culture. Institutions face tough choices: comply for priority access to billions in funding, or risk losing critical support. The new standards set the stage for ongoing debate over academic freedom, diversity, and the future of American universities.
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