University of California (UC) President James Milliken has sounded an alarm over what he calls one of the “gravest threats” in the institution’s 157-year history. In testimony before state lawmakers, Milliken outlined a looming financial crisis sparked by sweeping federal funding cuts and unprecedented political demands from the Trump administration.
The UC system — spanning 10 campuses, five medical centers, and serving hundreds of thousands of students and patients — receives more than $17 billion in federal funds annually. That includes $9.9 billion in Medicare and Medicaid reimbursements, $5.7 billion in research dollars, and $1.9 billion in student financial aid. According to Milliken, much of this funding is now at risk.
Already, UCLA alone has seen more than $500 million in research grants cut. On top of that, the administration has levied a $1.2 billion penalty against the system, alleging that UCLA and other campuses failed to adequately address antisemitism.
“These shortfalls, combined with the administration’s punitive demands, could devastate our university and cause enormous harm to our students, our patients, and all Californians,” Milliken warned. He has requested at least $4 to $5 billion annually in state aid to blunt the impact of federal cuts.
More Than a Budget Fight
The Trump administration has tied federal funding to sweeping political conditions, including:
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Release of detailed admissions data.
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Restrictions on protests.
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Elimination of race-related scholarships and diversity hiring.
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A ban on gender-affirming care for minors at UCLA health centers.
Critics argue that these conditions amount to political blackmail, undermining both academic freedom and healthcare access.
California Governor Gavin Newsom denounced the federal measures as “extortion” and “a page out of the authoritarian playbook.” Thirty-three state legislators urged UC leaders “not to back down in the face of this political shakedown.”
Protesters in the Crossfire
Yet while UC leaders frame themselves as defenders of free inquiry, many students and faculty who have protested war, racism, and inequality have found themselves silenced by the very system that now claims victimhood.
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2011 UC Davis Occupy Protest: Images of police casually pepper-spraying seated students went viral, symbolizing the university’s harsh response to peaceful dissent.
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2019 UC Santa Cruz Graduate Worker Strike: Graduate students demanding a cost-of-living adjustment were fired, evicted, or disciplined rather than heard.
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2022 UC Irvine Labor Strikes: Workers organizing for fair pay and job security faced heavy-handed tactics from administrators.
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2023–24 Gaza Encampments: UC campuses, including UCLA and UC Berkeley, called in police to dismantle student encampments protesting U.S. and UC complicity in Israel’s war in Gaza. Dozens of students were arrested, suspended, or disciplined for their participation.
These incidents show a pattern: UC celebrates academic freedom in official statements, but clamps down when protests threaten its ties to corporate donors, political interests, or foreign governments.
As one Berkeley student put it during the Gaza protests: “The university claims it’s under attack from Trump’s censorship — but it censors us every single day.”
UC’s Own Accountability Problem
Beyond silencing dissent, UC has been unresponsive to many Californians on broader issues: rising tuition, limited in-state enrollment, reliance on low-paid adjuncts, and partnerships with corporations that profit from student debt and labor precarity. For many working families, UC feels less like a public institution and more like an elite research enterprise serving industry and politics.
This contradiction makes the current crisis double-edged. UC is indeed being targeted by the Trump administration, but it also faces a legitimacy crisis at home.
Looking Ahead
Milliken, who took office as UC President on August 1, is lobbying state lawmakers to commit billions annually to offset federal cuts. But UC’s survival may hinge not only on political deals in Sacramento, but also on whether it can rebuild trust with the Californians it has too often sidelined — including the protesters and whistleblowers who have been warning for years about its drift away from public accountability.
The larger struggle, then, is not just UC versus Washington. It is about whether a public university system can still live up to its mission of serving the people — not corporations, not politicians, and not the wealthy few who hold the purse strings.
Sources:
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University of California Office of the President
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California State Legislature records
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Statements from Gov. Gavin Newsom
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U.S. Department of Justice communications
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Higher Education Inquirer archives on UC protest suppression and public accountability
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Coverage of UC Davis pepper-spray incident (2011), UC Santa Cruz COLA strike (2019), UC Irvine labor strikes (2022), Gaza encampment crackdowns (2023–24)
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