UC Labor Unions Challenge Free Speech and Funding Policies in New Federal Lawsuit

A coalition of labor unions, faculty, and students from the University of California system has filed a lawsuit against the Trump administration, accusing the federal government of using financial coercion to undermine academic freedom and silence institutions that support diversity, equity, and inclusion (DEI), climate initiatives, and campus protest.

The lawsuit, filed Tuesday in U.S. District Court for the Northern District of California, challenges the administration's freezing of funds — notably $584 million withheld from UCLA — and other threats to cut funding unless the university complies with demands related to admissions, hiring, and speech policies.

Although the UC system itself is not suing, it has expressed that these actions are among the gravest threats in its 157-year history. UC President James Milliken noted that the system depends on more than $17 billion annually in federal support.

The lawsuit is led by groups including the American Association of University Professors (AAUP) and the nonprofit Democracy Forward. It seeks restoration of any frozen funding and an injunction preventing the administration from conditioning funding on ideological litmus tests.

The plaintiffs allege the government's demands include providing government access to student, staff, and faculty data; ending diversity scholarships; banning overnight protests; and cooperating with immigration enforcement. Critics say these demands amount to political interference in academic policy.