https://www.city-journal.org/article/higher-education-trump-reform-universities-funding
Universities occupy a uniquely privileged position in American life. They enjoy tremendous prestige and billions in public subsidies, even as their costs have exploded, saddling the country with $1.7 trillion in outstanding student debt.
Do universities deserve their status? A growing number of Americans don’t think so. Far from delivering on their promises, most universities have devolved into left-wing propaganda factories. Nearly 60 percent of Republicans say that universities have a negative effect on the country, and only one in three independents has “quite a lot” of trust in higher education institutions. The trendlines suggest that the disillusionment has yet to hit bottom.
This is a crisis—and an opportunity. The Trump administration has a once-in-a-generation chance to reform higher education. The president and his prospective education secretary, Linda McMahon, should seize it.
The starting point of any serious higher-education agenda should be to recognize many universities for what they are: ideological centers that have abandoned the pursuit of knowledge for partisan activism. They have not earned their position as acclaimed credentialing institutions; rather, the schools have amassed their wealth and power from generous policy decisions bankrolled by American taxpayers, whom they have repaid mostly with contempt. These schools posture as though their position is untouchable, but their business model is nearly entirely reliant on federal largesse. Demanding that universities behave in a manner worthy of their unique financial and cultural position is long overdue.
But reform will not come easy. The Trump administration must renegotiate the deal between the citizens and the universities, conditioning federal funding on three popular demands: first, that the schools contribute to solving the student-debt crisis; second, that they adhere to the standard of colorblind equality, under both federal civil rights law and the Constitution; and third, that they pursue knowledge rather than ideological activism.
Here is how it can be done.
At the outset, we should acknowledge the dirty secret of higher education: it has become a creature, or, less charitably, a parasite, of the state. It is no stretch to say that the entire business model of higher education is fundamentally dependent on federal money.
First, consider direct grants. Universities collectively receive more than $50 billion in federal grants yearly. One-eighth of Havard’s annual budget—and two-thirds of its research funding—comes directly from the federal government. Likewise, Washington sends $900 million to Yale and $800 million to Columbia each year.
Some of this money goes to noble causes, such as cancer research. But much of it is devoted to ideological drivel, such as the $600,000 sent to Yale to study the “impacts of mobile technology on work, gender gaps, and norms”; $700,000 to the University of Pennsylvania to study how to allocate Covid vaccines on the basis of race; and $4 million to Cornell University to increase “minoritized” faculty in the medical sciences. And at some schools, administrators get the biggest cut, skimming up to 60 percent of grant funding as “indirect” overhead costs, which Congress once capped at a mere 8 percent.