Northwestern University Strikes $75M Deal, Restoring $790M in US Federal Research Funding

CHICAGO / WASHINGTON, Nov 29, 2025 — 
Northwestern University has reached a landmark agreement with the Trump administration to pay US $75 million — clearing the way for the restoration of nearly US $790 million in federal research grants that had been frozen earlier this year. 


Under the settlement, which also ends multiple government investigations, the university will pay the amount over three years. In return, the federal government will lift the funding freeze and resume eligibility for future grants, contracts and awards. 


University officials emphasized that this deal does not constitute an admission of wrongdoing. Rather, it is a “conditional settlement” aimed at resuming normal campus operations — including research, hiring decisions, and academic grants — while preserving the institution’s academic freedom and autonomy over admissions, curriculum, and faculty choices. 



The original funding freeze was imposed after federal scrutiny over the university’s handling of antisemitism allegations, admissions policies, and campus-free speech controversies. 



For many higher-education observers and stakeholders, the settlement marks a pivotal moment in the tug-of-war between federal oversight and university autonomy — potentially reshaping how American research institutions navigate political pressure, civil-rights scrutiny, and funding vulnerabilities in coming years.

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