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Northwestern University – Settlement with Federal Government

From September 2025 to November 2025
Northwestern University (Private college or university)
Evanston, IL

Identity of Speakers

  • Michael Schill
    Faculty/Staff
    Other

    Northwestern University President

Additional Information

  • Incident Nature:
    Other
  • Incident Political Orientation:
    Not Clear
  • Incident Responses:
    University administration changed university policy as a consequence
    Other
  • Incident Status:
    No litigation
  • Did not involve Speech Codes

Summary

On September 4, 2025, Northwestern University President Michael Schill announced his resignation, ending a three-year tenure. His resignation followed the Trump administration’s April 2025 decision to freeze roughly $790 million in federal research funding, citing concerns that the university had not adequately addressed antisemitism during pro-Palestinian protests on campus in 2024. The funding freeze resulted in approximately 425 layoffs, nearly half of which were vacant positions. Schill remained in office until an interim president was appointed.

The frozen federal funds affected laboratories, faculty research projects, and the university’s ability to continue certain research activities. University leadership negotiated with the Department of Justice, the Department of Education, and the Department of Health and Human Services to restore the funding and resolve investigations.

On November 28, 2025, Northwestern reached a settlement with the federal government. Under the agreement, the university committed to paying $75 million over three years to the U.S. Treasury. In return, the government agreed to restore the frozen federal research funding, ensure eligibility for renewals and new grants, and terminate all pending civil rights investigations against the university. Northwestern did not admit any wrongdoing as part of the settlement.

The agreement required Northwestern to revoke the Deering Meadow Agreement established in 2024, which had allowed temporary encampments and designated spaces for certain student organizations connected to pro-Palestinian advocacy. Despite these compliance requirements, the university emphasized that it retained control over its core academic governance, including admissions, hiring, curriculum, and campus speech. The settlement aimed to protect the university’s research continuity, stabilize its finances, and ensure long-term operational stability while adhering to federal law.