Newsom rejects $1 billion Trump demand tied to UCLA funding, calls it extortion threat

California’s governor Gavin Newsom made it clear this week that he will not give in to the Trump administration’s billion-dollar demand against UCLA.

Governor Rejects Billion-Dollar Payment

He spoke at a public summit in Sacramento. He said California must not “sell out our values.” The demand is linked to restoring research funding that was recently frozen.

The administration has blocked more than $500 million in funding for UCLA, claiming the university allowed a hostile climate toward Jewish students and staff. In return for restoring the money, the administration has asked UCLA to pay $1 billion and make sweeping changes. These changes include ending scholarships based on race or ethnicity and banning the use of race-related factors in admissions.

Newsom, who also serves as a member of the UC Board of Regents, said it would be unacceptable to pay such a “fine.” He asked bluntly, “Fine for what?” making it clear that he sees the demand as baseless and damaging.

Accusations of Extortion and Pressure on Universities

The standoff between the state and the administration is not only about money. According to the governor, the bigger issue is pressure being placed on universities that allow free expression and independent thought. He described the billion-dollar demand as a “false pretense” and even compared it to extortion.

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He also criticized the idea of settling with leaders who, in his words, have themselves given platforms to extremists. Furthermore, he pointed out the contradiction of being asked to pay a penalty for alleged antisemitism, while at the same time those making the demand have faced controversy over their own actions.

Newsom praised California’s Jewish caucus in the Legislature for publicly backing the universities and rejecting the demands. He also noted that some schools outside California have chosen to settle in order to get their research money back. In particular, he highlighted how universities like Columbia and Brown accepted deals, which he described as giving in out of fear.

Stakes for UCLA and the UC System

The administration’s demand, if accepted, would mark one of the largest financial penalties ever placed on an American university. Newsom said such a fine would effectively shut down UCLA as a top research institution. He stressed that this is not only about UCLA but about any university that values independent learning and critical thinking.

While some lawmakers said they would be open to a very small settlement if it helped restore funding, Newsom rejected the idea of paying any significant amount. He stated he would only consider an agreement that is symbolic and “has the form and substance of fog.”

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The UC administration has been cautious in its public response. Officials said they are still “evaluating” the proposal and described the demands as “devastating” and “far-reaching.” Behind closed doors, regents have faced tough questions about whether they should fight the administration in court or try to negotiate a smaller payment.

For now, the governor’s position is clear. He has vowed not to let the state “sell out its soul” or bend to political pressure. Calling the demand a direct attack on higher education, he warned that any institution fostering free thought is at risk of being targeted.

Renuka Bangale
Renuka Bangale
Renuka is a distinguished Chartered Accountant and a Certified Digital Threats Analyst from Riskpro, renowned for her expertise in cybersecurity. With a deep understanding of cybercrimes, malware, cyber warfare, and espionage, she has established herself as an authority in the field. Renuka combines her financial acumen with advanced knowledge of digital threats to provide unparalleled insights into the evolving landscape of information security. Her analytical prowess enables her to dissect complex cyber incidents, offering clarity on risks and mitigation strategies. As a key contributor to Newsinterpretation’s information security category, Renuka delivers authoritative articles that educate and inform readers about emerging threats and best practices.

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