The Transactional University: Trump’s Deal-Making Approach to Academia

Donald Trump’s “Compact for Academic Excellence” is a clear reflection of his transactional, deal-making approach, applied now to the world of higher education. The proposal, sent to nine top universities, eschews traditional policy debate in favor of a straightforward, high-stakes bargain: adopt our preferred ideology, and we will reward you with “substantial federal grants”; refuse, and we will cut you off completely.
This “art of the deal” strategy is evident in the compact’s structure. It presents a clear set of “deliverables” for the universities, including promoting conservative voices, ending race-conscious admissions, and freezing tuition. In return, the White House promises “multiple positive benefits,” framing the relationship between the government and academia as a simple business transaction rather than a partnership in the public interest.
The explicitly transactional nature of the compact has intensified claims that the president is using the power of the federal government to settle personal and political scores. Critics argue this approach reduces universities from centers of intellectual inquiry to mere contractors, hired to produce a specific ideological product. The “sweetener” of federal grants is the payment, and the 10-point plan is the non-negotiable list of services to be rendered.
This approach is a stark departure from previous federal engagement with higher education, which has typically been routed through peer-reviewed grant processes and established regulatory frameworks. The compact bypasses these systems entirely, creating a direct line of political and financial pressure from the White House to the university president’s office. It treats university autonomy not as a cherished principle but as a bargaining chip.
Ultimately, this deal-making approach forces universities to put a price tag on their core values. The administration has made its offer, and now institutions like Brown, MIT, and Vanderbilt must decide if their academic freedom, commitment to diversity, and institutional independence are for sale at the price of federal funding.