WASHINGTON — In a transformative first year of President Donald Trump’s second term, the U.S. higher education landscape has been redefined by aggressive federal intervention, massive funding withdrawals, and a systemic dismantling of diversity initiatives. Industry leaders describe a climate of “chaos” and “fear” as the administration leverages federal resources to enforce a specific political agenda, leading to the resignation of high-profile university leadership and the cancellation of numerous academic programs.
Systematic Defunding and Ideological “Crusades”
The administration has utilized federal grants as a primary lever for institutional change, attempting to terminate thousands of grants across more than 600 universities. These fiscal maneuvers specifically targeted institutions perceived as promoting “woke” research or failing to curb pro-Palestinian campus activism. Notably, Columbia University agreed to a $220 million settlement in July to restore research funding after a $400 million cut.
Beyond individual schools, the administration slashed billions from the National Institutes of Health and the National Science Foundation. Ted Mitchell, president of the American Council on Education, warns these actions threaten “American scientific power,” potentially allowing international competitors to surpass U.S. discovery efforts.
The Erasure of DEI and Regulatory Overhaul
On Jan. 20, an executive order mandated the elimination of all diversity, equity, and inclusion (DEI) programs at institutions receiving federal funds. This was bolstered by a February Department of Education directive threatening to revoke funding for any college considering race in admissions. While federal judges have blocked some of these efforts on procedural grounds, the pressure has already forced structural shifts.
The White House is further pressuring institutions to sign a “compact” that restricts the consideration of race, gender, and political views in hiring, while also limiting international student enrollment. In a move to reshape the workforce, the administration recently stripped “professional status” from degrees such as nursing and social work, effectively capping the loan amounts students can borrow for these programs.
Impact on Students and Global Standing
The policy shift has significantly impacted the international community, with the State Department revoking over 8,000 student visas in 2025. This crackdown, combined with a surge in ICE raids, has left international faculty and students in a state of perpetual insecurity.
As the administration moves to reform the accreditation process to eliminate perceived “liberal ideology,” critics argue the government is attempting to turn higher education into a “propaganda tool”. Public universities, which serve the majority of low-income students, have reportedly suffered nearly double the financial impact of private institutions, leading to concerns regarding long-term economic mobility for the American workforce.
