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Columbia University Settles $300 Million Dispute with U.S. Government

Columbia University has agreed to a significant settlement with the U.S. government, resolving a contentious dispute that has affected its federal funding and overall leadership. The Ivy League institution will pay a total of $300 million, which includes a $200 million penalty to address ongoing civil rights investigations. This agreement reinstates access to over $400 million in previously cancelled grants and contracts, as well as future federal funding opportunities.

The settlement follows a series of allegations regarding the university’s handling of antisemitism on campus, particularly amidst heightened tensions during pro-Palestinian protests related to the war in Gaza, which escalated after the October 7 attack. Columbia will also pay $21 million to settle claims of unlawful workplace discrimination against Jewish faculty and staff. A senior White House official indicated that this settlement represents one of the largest public employment discrimination settlements in nearly two decades.

In exchange for the financial compensation, the federal government will lift a freeze on many of Columbia’s terminated grants and restore the university’s eligibility for future federal awards. The agreement also mandates commitments from Columbia aimed at enhancing transparency and compliance with federal civil rights laws. This framework could serve as a model for other educational institutions facing similar scrutiny.

President Donald Trump expressed approval of the agreement, describing Columbia’s actions as “doing what is right.” He suggested that this settlement could pave the way for other universities to follow suit.

The deal highlights a period of intensified federal oversight of higher education in the United States. Critics argue that the administration has encroached on academic freedom and free speech, particularly in the context of diversity initiatives and enrollment of international students. Currently, international students account for nearly 40 percent of Columbia’s student population, significantly contributing to the university’s revenue.

In March, multiple federal agencies cancelled over 300 grants to Columbia researchers, citing the university’s “continued inaction” regarding complaints of antisemitism. In a statement, acting Columbia President Claire Shipman emphasized that the settlement was designed to uphold the university’s values and restore its essential partnership with the federal government.

The leadership turmoil at Columbia has seen the departure of President Minouche Shafik and interim leader Katrina Armstrong, who resigned in March following controversy about her management of reforms agreed upon with the White House. The settlement stipulates that Columbia will improve oversight of student protests and enhance rules regarding disruptive demonstrations.

Under the terms of the agreement, oversight will be conducted by Bart Schwartz, the founder of Guidepost Solutions, who will monitor compliance with the settlement. Columbia will also strengthen its scrutiny of international students by assessing their motivations for studying in the United States and sharing data with federal authorities.

The agreement has been characterized as a crucial recognition of the realities faced by Jewish students on campus. Brian Cohen, executive director at Columbia’s Kraft Centre for Jewish Student Life, stated that the settlement acknowledges the tangible impact of antisemitism on Jewish students’ sense of safety and belonging.

In a contrasting response, Columbia University Apartheid Divest, a coalition of pro-Palestinian student groups, condemned the university for prioritizing financial settlements over student welfare.

Earlier this month, Columbia announced its intention to adopt the International Holocaust Remembrance Alliance’s definition of antisemitism. The university also pledged to implement mandatory anti-discrimination training in partnership with Jewish organizations.

Education Secretary Linda McMahon praised the reforms as a potential blueprint for elite universities seeking to regain public trust through renewed commitments to truth-seeking and civil discourse. She expressed hope that these changes would positively influence campus culture in the coming years.

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