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Trump Administration Proposes New Funding Compact to UT-Austin

Students engaging in discussion about university policies at UT-Austin

Austin, Texas, October 5, 2025

News Summary

The Trump administration has introduced a controversial funding compact for the University of Texas at Austin, imposing strict operating principles. Key provisions include a new definition of gender, a cap on international student enrollment, and an emphasis on political neutrality. The compact aims to prevent disruptive protests and includes a tuition freeze along with grading standards that reflect mastery. While some stakeholders support the initiative, many faculty leaders express concerns about academic freedom and potential authoritarian control over educational institutions.

Austin, Texas

The Trump administration has proposed a “compact” to the University of Texas at Austin (UT-Austin), which would establish specific operating principles that the university must adhere to in exchange for access to preferential federal funding. The proposal includes contentious requirements that have drawn both support and criticism from various stakeholders within the academic community.

Key provisions of the compact include a stricter definition of gender, limiting international student enrollment to 15% of the undergraduate population, and mandating that admissions and hiring processes give no consideration to race or sex. Furthermore, applicants would be required to take standardized tests, such as the SAT, a requirement that was reinstated at UT-Austin last year. The university would also commit to political neutrality and would be required to restructure programs that are perceived to sideline conservative viewpoints.

The compact aims to enforce stricter rules against disruptive campus protests. This initiative follows recent events, including pro-Palestinian demonstrations at various universities and a viral confrontation at Texas A&M, where a student challenged a professor over discussions of gender identity. In response to these incidents, Texas Tech University’s leadership has directed compliance with federal policies defining gender strictly as male and female, while the UT System is reviewing courses on “gender identity” for adherence to federal and state guidelines.

Additional components of the compact involve a five-year freeze on tuition rates, which currently affects Texas universities up to the academic year 2027-28 as set by Governor Greg Abbott. Additionally, students who drop out within their first year would be eligible for tuition refunds, and universities must adhere to grading standards that reflect a student’s mastery of the subject matter.

Compliance with the compact would require certifications from university leaders, with the potential for consequences if violations occur—ranging from federal reviews to the repayment of funds. As part of the proposal, compliant institutions would gain priority access to federal grants and invitations to White House events.

Concerns regarding the compact have been voiced by faculty leaders and organizations. The American Association of University Professors’ local chapter criticized the proposal as a threat to academic freedom, while the Texas Faculty Association accused the administration of attempting to control funds through what they labeled an “authoritarian” model.

The UT System Board of Regents Chair expressed honor at UT-Austin’s selection for this initiative and eagerness to engage with the administration. Other universities included in the compact are Vanderbilt, Dartmouth, the University of Pennsylvania, the University of Southern California, the Massachusetts Institute of Technology (MIT), the University of Arizona, and the University of Virginia.

This proposal has initiated discussions across the nation among education leaders and policymakers regarding the implications of such control over higher education institutions and the potential impact on free expression.

Summary of Compact Provisions

Provisions Details
Stricter Definition of Gender A new definition of gender, strictly limiting options
International Student Cap Limit enrollment to 15% of the undergraduate population
No Race or Sex Consideration Admissions and hiring processes must be race and sex-neutral
Standardized Testing Applicants must take standardized tests such as the SAT
Political Neutrality Commitment to neutrality and restructuring of certain programs
Campus Protest Regulation Stricter rules against disruptive protests
Tuition Freeze Five-year freeze on tuition rates
Tuition Refund Policy Refund for students dropping out within their first year
Grading Standards Adherence to standards reflecting mastery of the subject

FAQ

What is the main purpose of the proposed compact to UT-Austin?

The Trump administration has requested the University of Texas at Austin (UT-Austin) to agree to specific operating principles for access to federal funding.

What are some key provisions included in the compact?

Key provisions include a stricter definition of gender, a five-year freeze on tuition rates, a cap on international student enrollment limited to 15% of the undergraduate population, and mandates on admissions and hiring processes for no consideration of race or sex.

Which other universities are included in the compact?

The other universities included in the compact are Vanderbilt, Dartmouth, University of Pennsylvania, University of Southern California, Massachusetts Institute of Technology (MIT), University of Arizona, and University of Virginia.

What has been the response from faculty leaders regarding the compact?

Faculty leaders, including Pauline Strong of the American Association of University Professors, opposed the compact, calling it a threat to academic freedom.

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Additional Resources

STAFF HERE AUSTIN WRITER
Author: STAFF HERE AUSTIN WRITER

The AUSTIN STAFF WRITER represents the experienced team at HEREAustinTX.com, your go-to source for actionable local news and information in Austin, Travis County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as SXSW, Austin City Limits Music Festival, Formula 1 United States Grand Prix, and the Austin Film Festival. Our coverage extends to key organizations like the Greater Austin Chamber of Commerce and Visit Austin, plus leading businesses in technology, automotive, and retail that power the local economy such as Dell Technologies, Tesla, and Apple. As part of the broader HERE network, including HERECollegeStation.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.

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