Cornell reaches deal with Trump to restore research funds

Cornell University has settled with the Trump administration, agreeing to pay a $30 million fine and invest another $30 million in agriculture and farming efficiency programs to regain hundreds of millions in frozen federal research funding.

The deal, announced Friday, terminates months-long federal probes into allegations of antisemitism and racial discrimination in admissions at the Ivy League institution. As a land-grant university renowned for agricultural research, Cornell must direct the investments toward cost reductions and operational enhancements in that sector.

The funding freeze began abruptly in April, triggering dozens of stop-work orders amid the scrutiny.

University officials disclosed receiving these orders, which halted projects and exacerbated financial pressures. Cornell's workforce had expanded by over 15% in four years, but the cutoff forced a pivot to austerity.

Leaders in June flagged impending layoffs and launched a "comprehensive review of programs and head count across the university." They considered issuing $1 billion in bonds to bridge gaps, warning that interim use of institutional reserves proved unsustainable.

"We have been using institutional resources to try to plug these funding holes in the short term, but these interim measures are not sustainable," executives stated. "We must immediately address our significant financial shortfalls by reducing costs and enacting permanent change to our operational model."

This pact marks the fifth such resolution since early July in the administration's campaign targeting elite universities over similar complaints over antisemitism.