University of California reviews US government’s $1.3 billion UCLA settlement offer

WASHINGTON – The University of California said on Aug 8 it was reviewing a US$1 billion (S$1.29 billion) settlement offer by US President Donald Trump’s administration for UCLA after the government froze hundreds of millions of dollars in funding over pro-Palestinian protests.

UCLA, part of the University of California system, said this week that the government froze US$584 million in federal funding.

Mr Trump has threatened to cut federal funds for universities over pro-Palestinian student protests against US ally Israel’s war in Gaza. The government alleges universities, including UCLA, allowed anti-Semitism during the protests, while some faculty groups have sued saying the cuts have chilled free speech.

Large demonstrations took place at UCLA in 2024. Protesters, including some Jewish groups, say the government wrongly equates their criticism of Israel’s military assault in Gaza and its occupation of Palestinian territories with anti-Semitism, and their advocacy for Palestinian rights with support for extremism.

“The University of California just received a document from the Department of Justice and is reviewing it,” University of California president James Milliken said in a statement, adding that the institution offered to have talks earlier this week with the government.

Last week, UCLA agreed to pay more than US$6 million to settle a lawsuit by some students and a professor who alleged anti-Semitism. It was also sued in 2025 over a violent mob attack on pro-Palestinian protesters in 2024.

In July, the government settled its probes with Columbia University, which agreed to pay more than US$220 million, and Brown University, which said it will pay US$50 million. Both institutions accepted certain government demands. Talks to settle with Harvard University are ongoing.

The US$1 billion settlement offer for UCLA marks an unusually high amount. The White House had no immediate comment.

Experts have raised concerns about the government’s federal funding threats to universities, saying they amount to an assault on free speech and academic freedom. The government has also attempted to deport some international students, over which civil rights groups have raised due process concerns.

Rights advocates note a rise in anti-Semitism, anti-Arab bias and Islamophobia due to the conflict in the Middle East. The Trump administration has not announced equivalent probes into Islamophobia. REUTERS