Northwestern University to pay $75 million to restore federal funding after DOJ settlement

Northwestern University has agreed to pay $75 million as part of a settlement with the federal government that restores previously frozen funding and ends a months-long investigation into alleged unlawful discrimination. The probe, launched by the Justice Department earlier this year, had targeted the university over race-based admissions practices and allegations of a hostile environment for Jewish students.

Under the terms of the agreement, Northwestern must comply with federal anti-discrimination laws, overhaul its policies on campus demonstrations, and implement mandatory antisemitism training for students, faculty and staff. The payments will be spread out through 2028, after which the university is expected to resume full compliance and funding eligibility.

Prior to the settlement, nearly $790 million in federal funding to Northwestern had been suspended — one of the largest funding freezes imposed on a U.S. university under the current administration. The freeze disrupted many grants and contracts, creating uncertainty for research and campus programs.

Once the settlement is finalized, the government says it will close all pending investigations and treat Northwestern as eligible again for future federal grants, contracts, and awards. The university expects overdue payments on non-terminated, federally funded grants and contracts to start resuming within days and be fully restored within about 30 days.

This agreement comes as part of a broader wave of scrutiny facing several elite U.S. universities. Other institutions have accepted similar settlements or conditions to restore federal funding, including payments, external monitoring, or reporting requirements.

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