University of Virginia Achieves Unmatched Deal Terms with Trump Organization, Outshining Peer Institutions

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The University of Virginia (UVA) recently became a pioneer among public universities by securing an agreement with the Trump administration that offers more advantageous terms than those granted to other educational institutions. This development suggests a potential shift in higher education dynamics.

Unlike Columbia University, Brown University, and the University of Pennsylvania, UVA managed to sidestep hefty financial penalties. However, the university did not entirely escape without any obligations.

To halt federal investigations, UVA consented to follow the administration’s “Guidance for Recipients of Federal Funding Regarding Unlawful Discrimination.” This guideline, according to the Department of Justice, is intended to ensure that UVA’s hiring, admissions, and other procedures do not involve “unlawful racial discrimination.”

In addition, UVA will provide quarterly reports to the Trump administration, allowing them to monitor compliance with the agreement. Although UVA was not subjected to external oversight, the federal government retains the authority to determine whether the university’s actions meet the agreement’s requirements.

“It gives the administration ‘sole discretion’ to determine whether, in its view, these laws have been violated and to tie future funding to its determination. It puts UVA on a short leash and needs to be seen in a larger context in which the Administration is seeking to improperly interfere with the freedom schools have traditionally enjoyed relating to admissions, faculty appointments and the content of their teaching,” said Michael Posner, director of the Center for Business and Human Rights at New York University’s Stern School of Business and a former assistant secretary of State.

The deal does note UVA will align itself with the Trump administration’s interpretation of the 2023 Supreme Court decision on affirmative action as long as it is “consistent with relevant judicial decisions.”

The federal investigations won’t completely end, either, until UVA follows through on its promise to eliminate diversity, equity and inclusion (DEI) programs at the institution.

Despite the quarterly updates, the overall deal has far fewer conditions than ones given to Columbia, Brown and Penn earlier in the year.

Each of those universities faces a multimillion-dollar payout, with Columbia hit the hardest with a $200 million fine to the federal government. All the universities also agreed to changes in disciplinary policies and other measures.

Although not finalized, reports of a deal between Harvard and the Trump administration indicate a $500 million payout could come from the university.

UVA faces different circumstances with the Trump administration than several private institutions.

The private institutions were accused of letting antisemitism run rampant on their campuses after the Oct. 7, 2023, Hamas attack on Israel. This issue has been subject to multiple congressional hearings, with Republicans calling for big punishments for institutions they believe are guilty of creating unsafe environments for Jewish students.

For UVA, the trouble came around its alleged use of race in school processes the Trump administration deemed illegal.

“This agreement allows UVA to move forward together, upholding the University’s principles and independence while maintaining the essential research partnership with the federal government,” said Rachel Sheridan, UVA board of visitors rector.

“This has been a challenging time for many institutions in higher education, including UVA. The agreement results from steadfast adherence to the same values that have guided generations of UVA’s leaders and that we have honored as stewards of that legacy,” she added.

During the months of negotiations, UVA also made moves to garner favor, including when President James Ryan stepped down from his position.

In his statement about his departure, Ryan emphasized he saw his choices as staying to fight or potentially costing the university millions of dollars in pulled funding.

“While there are very important principles at play here, I would at a very practical level be fighting to keep my job for one more year while knowingly and willingly sacrificing others in this community,” he said.

People familiar with the situation told The New York Times earlier this week that Ryan’s resignation went a long way toward UVA securing a better deal.

UVA officials are also crediting new interim President Paul Mahoney.

“President Mahoney has navigated a complex federal landscape with remarkable skill and care,” said Brie Gertler, interim executive vice president and provost. “I am grateful for his thoughtful leadership throughout this important process.”

Some wonder if the administration is losing some leverage with higher education institutions after recent missteps.

The most recent move by the Trump administration was a college compact sent to nine universities, including UVA, that offered preferential funding treatment in exchange for certain policy changes the federal government wants to see in higher education.

Seven universities, including UVA, outright rejected the compact, although UVA cited different concerns such as how funding needs to be based on merit and not deals with the federal government.

“I think, putting this in context with this latest effort by Trump and [Secretary of Education] Linda McMahon to get universities to sign on to this compact, we see that universities are starting to push back and say ‘we’re not going to engage with this sort of stuff,’” said Jonathan Becker, associate professor of education leadership at Virginia Commonwealth University.

“If this is a battle between the federal government and institutions of higher education, the momentum was swinging towards the institutions,” he added.

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University of Virginia Achieves Unmatched Deal Terms with Trump Organization, Outshining Peer Institutions

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