Victor Davis Hanson on Universities' "Trump Deal" and Federal Funding

University Dependence on Federal Funding

• 🎯 Major private universities like Harvard, Columbia, and Stanford are heavily reliant on federal funding.
• 💡 Engaging in a dispute with the federal government could expose undisclosed issues within these institutions, likened to turning over a rock on moist ground.

Rising Tuition and Federal Loans

• 💰 Universities have drastically increased tuition, room, and board costs, outpacing inflation, since the federal government began guaranteeing student loans.
• 📈 This federal backing created a moral hazard, allowing universities to increase prices without direct consequence, unlike institutions like Hillsdale College which receive no federal money.
• 💸 The public, including those not attending college, subsidizes this through taxes that support federal loan programs.

Constitutional Rights and University Policies

• ⚖️ Universities often fail to uphold constitutional rights, such as due process, for students and faculty accused of offenses.
• 🚫 Protections like open hearings, trial by jury, and knowing one's accusers are frequently absent.

Racial Policies and Lack of Intellectual Diversity

• 🚩 Despite the Supreme Court ruling against affirmative action, universities maintain race-based policies through theme houses and separate graduations.
• 📉 Studies indicate a severe lack of intellectual diversity, with very few openly Republican faculty members at elite institutions.
• 🧩 The emphasis on race and gender, contrary to federal law, suggests a partisan nature within these supposedly non-partisan institutions.

Financial Practices and Endowments

• 🏦 Universities often overcharge federal grants for administrative costs, sometimes taking 40-60% for indirect expenses.
• 💰 Many institutions possess multibillion-dollar endowments that generate substantial, largely tax-free income.
• ⚠️ The tax-free status of these endowments is predicated on their non-political and non-partisan nature, which is increasingly being challenged by their internal policies and faculty composition.

A Strategic "Deal" with the Trump Administration

• 🤝 Victor Davis Hanson suggests university presidents should make a deal with the Trump administration rather than fight.
• 🗣️ This deal would provide an external reason to dismantle radical student demands, such as mask mandates or racially segregated dorms, by citing federal law.
• ⚠️ Hanson believes universities will face significant accountability and unpleasant consequences if they continue to resist transparency and reform.