University of California system President James Milliken told state lawmakers Wednesday that financial losses due to the Trump administration’s funding cuts could spread to all 10 campuses, labeling it as one of the “gravest threats” in the school’s 157-year history.
He is asking the state for at least $4 billion to $5 billion per year “to minimize the damage” of the loss of federal dollars.
Milliken said shortfalls from the Trump administration are already cutting more than $500 million in grants to the University of California, Los Angeles, and demands of a $1.2 billion payout over allegations of antisemitism on campuses could cause serious harm to the university system.
In a letter to dozens of state lawmakers, Milliken, who became president of the UC system on Aug. 1, claimed that “the stakes are high, and the risks are very real.”
“The UC system is not only one of the world’s leading academic institutions, but also a key driver in California’s economic success story that contributes to thriving communities throughout the state,” Milliken said. “We are the second largest employer in the state — nearly 275,000 people work at our campuses and medical centers — and we indirectly support over 500,000 jobs. We are present in every county in this state, providing health care, supporting farmers, and fostering innovation and entrepreneurship that leads to new inventions and companies.”
Milliken said he met with 30 legislators last week and stressed how important the matter was to the survival of the public university system. The UC system receives more than $17 billion per year from the federal government — $9.9 billion in Medicare and Medicaid funding, $5.7 billion in research funding, and $1.9 billion in student financial aid per year.
Milliken said a substantial loss in federal funding would “devastate our university” and “cause enormous harm to our students, our patients, and all Californians.” That would include classes and student services being cut, patients being turned away, and tens of thousands of jobs being lost.
“The University faces an extraordinary challenge, and we will need the resolve and partnership of our state’s leaders if we are to ensure that UC can continue to serve the people of California as it has for generations,” he added.
Gov. Gavin Newsom (D-CA), one of President Donald Trump’s most vocal critics, has called the administration’s actions nothing short of “extortion” and “a page out of the authoritarian playbook,” vowing to fight back. So have 33 other state legislators who urged UC leaders “not to back down in the face of this political shakedown” from Trump.
In addition to the grant cuts and billion-dollar fine, the administration has also demanded sweeping changes at UCLA’s Westwood campus, including the release of detailed admissions data, restrictions on protests, and an end to race-related scholarships and diversity hiring programs. The Justice Department also wants a ban on “gender-affirming care” for minors at UCLA healthcare systems.
The Trump administration accused UCLA of violating civil rights laws by not taking antisemitism on its campuses seriously, though a number of influential faculty members, staff, and students, including members of the California Legislative Jewish Caucus, have said the school has made progress on sensitive campus issues stemming from the Oct. 7, 2023, Hamas attack on Israel and the war in Gaza.
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In recent weeks, Newsom has stood firm on his belief that the UC system should not agree to the $1.2 billion fine the Trump administration is asking, saying the system needs to “do the right thing” but understands “they’re all scared.”
He added that the state should not have to pay to settle with “the guy who had dinner with Nick Fuentes telling us about antisemitism,” making a reference to the right-wing activist whom Trump hosted in 2022 at Mar-a-Lago. “Are you kidding me?”
Newsom has publicly called out Brown and Columbia universities for reaching deals with the administration and said Harvard University’s president should resign on the spot for even considering a settlement.
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“Everyone’s scared,” Newsom said. “That’s why they sold out at Columbia.”
Calls to the UC system from the Washington Examiner for comment were not returned.
