University of Virginia Close to Deal With Trump Administration Over Federal Investigations

CHARLOTTESVILLE, Va. — The University of Virginia is on the verge of striking a deal with the Donald Trump administration that would resolve multiple federal investigations focused on its diversity, equity and inclusion (DEI) policies and admissions practices.

The negotiations, led by UVA interim president Paul G. Mahoney, could mark the first time a major public university reaches such an agreement with the federal government under the so-called "Compact for Academic Excellence in Higher Education." Under the terms under discussion, UVA would avoid paying a financial penalty or entering formal monitoring, unlike recent deals reached by private institutions.

UVA has faced scrutiny from the U.S. Department of Justice (DOJ), which in recent months warned the school it could lose millions in federal funding if it did not take corrective action related to alleged violations in hiring, admissions and antisemitism.

In March 2025 the university's governing board voted to dissolve its DEI office, a move seen as aligning with federal expectations. In June, President James E. Ryan announced his resignation amid pressure from the administration.

Mahoney told the board in September that federal investigators had closed two of the university's admissions-related investigations after reviewing the documentation provided by UVA.

Why This Matters

The emerging deal highlights a shifting dynamic in U.S. higher education: where once elite universities were free to negotiate with the federal government, they now face a direct test of compliance and autonomy. Critics warn the move may set a precedent extending to public institutions nationwide.

UVA's handling of DEI, admissions policies and federal investigations has turned it into a litmus test for how far the administration is willing to tie federal funding to institutional policies. The outcome could reshape the nature of federal-university relationships, particularly around academic freedom, institutional governance and research direction.

As universities review their options in the coming weeks, the question looms: will federal funding continue on a purely merit-based model, or will compliance with policy norms become a prerequisite?