U.S. President Donald Trump has demanded a massive $1 billion fine (Ksh.129 billion) from the University of California (UC) system, claiming the university mishandled student protests at UCLA in 2024 that were linked to the Gaza conflict and resulted in alleged acts of antisemitism.
The amount is five times higher than the fine paid by Columbia University in a similar case earlier this year, and could deal a major financial blow to one of America’s top public university systems.
UC President James Milliken, who oversees the university’s 10 campuses—including UCLA, confirmed that the administration received the demand on Friday and is currently reviewing it.
“As a public university, we are responsible for managing taxpayer money. A payment of this size would be devastating to the UC system and deeply harm our students and the state of California,” Milliken said.
He emphasized the importance of the UC system in medical research, national security, and technology development, saying it plays a vital role not just for California, but for the entire U.S.
California Governor Gavin Newsom, who also sits on the UC board, responded strongly to the demand, calling it “extortion.”
“He has threatened us with a billion-dollar fine unless we give in to his political agenda,” Newsom said during a press briefing. “We will sue. We will not be complicit in attacks on academic freedom or the destruction of this public institution.”
Newsom defended the UC system as a pillar of innovation and excellence, noting that California produces more scientists, engineers, and Nobel Prize winners than any other state in the U.S.
The fine is reportedly intended to cover alleged discrimination against Jewish students during the pro-Palestinian demonstrations on campus. In addition to the Ksh.129 billion fine, the government is also asking the UC system to pay Ksh.22 billion ($172 million) into a compensation fund for affected students.
The protests, part of a nationwide wave in 2024, saw student encampments and clashes with police on several university campuses, including Columbia, Harvard, and UCLA. Then-President Joe Biden responded at the time by saying “order must prevail.”
Since returning to office in January 2025, Trump has ramped up pressure on U.S. universities, accusing them of bias against conservatives and promoting liberal ideologies.
The White House has also frozen over $500 million in federal grants meant for medical and scientific research at UCLA, adding to the financial strain on the university.
Observers believe Trump’s administration is using a similar tactic it applied with Columbia University—forcing institutions to make concessions in exchange for financial relief. Columbia, for example, agreed to stop using race as a factor in admissions and hiring—a move that sparked strong backlash from California officials.
“We are not like other institutions that bowed to this pressure. We will fight,” Newsom added.
