The ongoing tension between state governance and federal education policies has intensified as California Governor Gavin Newsom threatens to cut state funding for universities that comply with a compact proposed by the Trump administration. The compact, which offers preferential access to federal funding, requires colleges to adopt certain ideological and hiring practices. In response, several institutions, including U.Va., UT Austin, and MIT, are weighing the implications of signing the agreement. Critics, including the ACLU and faculty members at various institutions, argue that the compact represents a threat to academic freedom and could lead to significant ideological shifts within higher education. As universities consider their positions, the debate continues over the balance between federal incentives and institutional integrity.