University of Texas is offered preferential funding treatment by Trump Administration

The Tower at the University of Texas at Austin.

October 3, 2025

The Trump administration has sent a letter to nine universities – including the University of Texas (UT) at Austin – formally requesting them to adopt a new set of principles in exchange for preferred access to federal funding. 

The 10-point compact is the latest effort by the administration to exert federal control over public state university policies and operations. Titled the “Compact for Academic Excellence in Higher Education,” the missive intends to improve university standards and results by focusing on addressing collegiate political climates and re-establishing access to federal funding programs. 

The UT System will need to comply with the requirements to have access to better funding and federal grant programs. Universities within the system have already received funding cuts, including UT losing $47 million in research grants following sweeping federal changes and rescissions. 

Among these criteria, the system would place a cap on international student enrollment, which has already been falling following the cancellation of thousands of student visas. Standards for accepting international students are slated to drastically increase through stricter vetting procedures. 

The system would also be required to adopt a stance on gender identity, recognizing only two valid genders. The letter includes a request to eliminate departments that have been alleged to spark violence against conservative ideas. Staff would also be prohibited from expressing political views while representing the universities they are employed by. 

As part of the federal government’s focus on removing in-place DEI policies across all levels of government, universities have been asked to ban the consideration of race and gender during the hiring and admissions processes.  

Additional points outlined in the letter would require the universities to: 

  • Refrain from inflating or deflating grades. 
  • Ensure applicants take the SAT or a similar test. 
  • Institute a five-year tuition freeze. 
  • Change governance structures and responsibilities. 

The UT System has already been working toward aligning its educational priorities with the current administration, beginning with compliance with an anti-DEI state law since 2024. The system has also been reviewing gender identity courses across all campuses to ensure they are compliant with applicable, state and federal guidance and expectations set by university leaders. System officials have expressed enthusiasm for collaborating with the administration to review these standards. 

Photo by Brixiv from Pexels

Related Content:

State shuffles leadership at TCEQ

State shuffles leadership at TCEQ

Tonya Miller has been appointed to the Texas Commission on Environmental Quality (TCEQ). Her term is set to end Aug. 31, 2031.  The TCEQ oversees the state’s efforts to protect public health and natural resources through sustainable economic development. Its mission...

read more
SEC clears Dallas-based stock exchanges for launch

SEC clears Dallas-based stock exchanges for launch

With the U.S. Securities and Exchange Commission’s (SEC) official approval, the Texas Stock Exchange (TXSE) has been given the green light to operate as a national securities exchange. It is the first fully integrated national securities exchange to receive this...

read more
Texas Water Development Board gains new leadership

Texas Water Development Board gains new leadership

New leadership will soon guide the Texas Water Development Board (TWDB), the state’s leading entity for water initiatives and flood planning, financing and data generation.  On Sept. 26, Gov. Greg Abbott announced the appointment of Brady Franks to the board, leading...

read more

Subscribe: