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Friday, September 5, 2025

The money-where-the-mouth-is problem

You probably saw the recent LA Times article concerning an exchange of letters between state legislative leaders - notably State Senator Wiener - and UC President Milliken concerning the current UC/UCLA conflict with the US Dept. of Justice and the feds more generally.*

The Wiener letter to Milliken seemed to urge no concessions to the feds. But it did not urge that there be no negotiations - which seems paradoxical.** (If you say there will be no concessions, what is left to negotiate about?) Excerpt:

"Concessions by UCLA would establish a damaging precedent for extorting public schools in states with leadership that does not bow down to this President. We must resist Trump’s extortion to protect public higher education, the economy, our students and California's values. 

As negotiations proceed, please continue to fight for the people of California and stand strong against the demands of the Trump administration. The only way to deal with a bully is to fight for what is right. The legislature of the State of California stands firmly behind you. If we can be of any assistance please do not hesitate to contact us. We are here for the UC and the people of California."

In response, Milliken wrote back to Wiener and the other legislators spelling out what the costs to UC/UCLA could potentially be:***

"The University of California receives over $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. A substantial loss of federal funding would devastate our university and cause enormous harm to our students, our patients, and all Californians... If the University loses the federal funding I mentioned earlier, we would need at least $4-5 billion per year to minimize the damage of that loss. That is what fighting for the people of California will take..."

The letter is a polite way of saying to the legislature (and the governor), put your money where your mouth is. So far, the Sen. Wiener et al have not written back offering the $4-5 billion/year specified by Milliken.

The Regents, it is rumored, have engaged some high-priced legal talent to guide them in the negotiations with the feds. Here is some free advice from a non-lawyer:

1) Find out quickly whether the feds are serious about talks leading to something. The $1 billion demand raises the question of whether they are serious or just want to keep the conflict going.

2) Regardless of the answer to #1, settle the remaining legal cases that arose out of the events of 2023-2024. Already, the Regents have reached a $6+ million settlement with some plaintiffs. But there are other cases pending. Whatever the cost to settle, it will be pennies compared to what the feds are asking. And having put the past behind, in any upcoming court conflict with the feds, UC/UCLA will be in a position to say that what occurred was under the old Gene Block regime, those issues have been settled, and now there is a new dawn with Julio Frenk.

Yes, if you follow the free advice of yours truly and settle with the remaining plaintiffs, there might be some "rising above principle" involved. But the legislature and the governor are well acquainted with the concept of rising above principle. It's an occupational requirement. And they haven't rushed to offer the required $4-5 billion/year. 

Yours truly stands ready to offer more free advice. Any time. Just ask. In fact, he might offer advice even if you don't ask.

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*https://www.latimes.com/california/story/2025-09-04/uc-ucla-billions-at-risk-in-federal-funding-trump.

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**https://www.documentcloud.org/documents/26083259-letter-to-uc-leaders/.

August 31, 2025

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Office of the Secretary and Chief of Staff to the Regents

1111 Franklin St.,12th floor

Oakland, CA 94607

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President James B. Milliken

University of California

1111 Franklin Street

Oakland, CA 94607

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Chancellor Julio Frenk

Box 951405, 2147 Murphy Hall

Los Angeles, CA 90095-1405

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Dear UC Regents, UC President James B. Milliken, and UCLA Chancellor Julio Frenk:

We’re writing to offer our strong support to you and the University of California (UC) as Donald Trump’s Department of Justice (DOJ) demands $1.2 billion from UC. According to reports of a “draft settlement,” the administration seeks to exert indefinite control over UCLA’s admissions, curriculum, and regulation of student and campus life. We urge you not to back down in the face of this political shakedown and to stand by Californians and their values.

The UC system is not only one of the most prestigious academic institutions in the world, it is a vital economic driver. The UC employs over 200,000 people and indirectly supports over 500,000 jobs, contributing $82 billion annually. It is in this context that the Trump administration is seeking to freeze at least $584 million in research grants and demanding $1 billion in fines and a $172 million "claims fund." 

This is an extortion attempt and a page out of the authoritarian playbook: control the universities. These actions are an attack on California and particularly offensive when perpetrated in the name of the Jewish community. While there have been real issues with antisemitism on campus, the UC and UCLA have worked hand in glove with the Jewish community and the California Legislative Jewish Caucus to address these issues in tangible ways. To take such extreme action against UC and scientific research in the name of Jews — an action a large majority of Jews do not support and find to be vile — harms Jews, makes Jews less safe, and undermines the hard work of fighting antisemitism. 

The UC must not cower to bad-faith attempts to weaponize antisemitism, especially when they are so blatantly designed to be a wedge between Jews and other vulnerable communities. Free speech, academic freedom, scientific research, and democracy are values that have led to Jewish flourishing. These attacks on California, on our immigrant communities, on science, and on LGBTQ people stand in stark contrast to Jewish values. Acceding to these reprehensible demands won't stabilize the UC system; it will betray our values of protecting and celebrating our most vulnerable communities. Giving in will only encourage further unconstitutional behavior by this Administration. 

Columbia University's concessions in March of 2025 did not satisfy Trump. Instead it led to increased demands, the freezing of additional funds, and more concessions. The Trump administration cannot be allowed to dictate campus policies in California or across this nation. At Brown University, a recent settlement prohibits the University from providing life-saving gender affirming care for minors and mandates discrimination against transgender people.

California is home to the highest number of undocumented students of any state. These students already face unprecedented attacks and would be further harmed by restrictive policies limiting their admission or participation on campuses. These risks are not unique, and while UCLA is currently in the Administration’s crosshairs, other UC campuses, like Berkeley, are likely to face similar threats. An open DOJ investigation into UC's admission and hiring practices could lead to further extortion. 

Concessions by UCLA would establish a damaging precedent for extorting public schools in states with leadership that does not bow down to this President. We must resist Trump’s extortion to protect public higher education, the economy, our students and California's values. As negotiations proceed, please continue to fight for the people of California and stand strong against the demands of the Trump administration. The only way to deal with a bully is to fight for what is right. The legislature of the State of California stands firmly behind you. If we can be of any assistance please do not hesitate to contact us. We are here for the UC and the people of California.

Respectfully,

Senator Scott Wiener

California Senate, District 11

Senator Benjamin Allen

California Senate, District 24

Assemblymember Rick Chavez Zbur

California Assembly, District 51 

Assemblymember Cecilia Aguiar-Curry

California Assembly, District 4

Assemblymember David Alvarez

California Assembly, District 80

Assemblymember Steve Bennett

California Assembly, District 38

Assemblymember Marc Berman

California Assembly, District 23

Senator Catherine Blakespear

California Senate, District 38

Assemblymember Isaac Bryan

California Assembly, District 55

Senator Anna Caballero

California Senate, District 14

Senator Sabrina Cervantes

California Senate, District 31

Assemblymember Sade Elhawary

California Assembly, District 57

Assemblymember Robert Garcia

California Assembly, District 50

Senator Lena Gonzalez

California Senate, District 33

Assemblymember Mark Gonzàlez

California Assembly, District 54

Assemblymember John Harabedian

California Assembly, District 41

Assemblymember Gregg Hart

California Assembly, District 37

Assemblymember Corey Jackson

California Assembly, District 60

Assemblymember Maggie Krell

California Assembly, District 6

Senator Caroline Menjivar

California Senate, District 20

Assemblymember Al Muratsuchi

California Assembly, District 66

Assemblymember Liz Ortega

California Assembly, District 20

Senator Steve Padilla

California Senate, District 18

Senator Sasha Renée Pérez

California Senate, District 25

Assemblymember Cottie Petrie-Norris

California Assembly, District 73

Assemblymember Sharon Quirk-Silva

California Assembly, District 67

Assemblymember Celeste Rodriguez

California Assembly, District 43

Senator Susan Rubio

California Senate, District 22

Assemblymember Nick Schultz

California Assembly, District 44

Assemblymember Jose Luis Solache

California Assembly, District 62

Senator Henry Stern

California Senate, District 27

Senator Thomas Umberg

California Senate, District 34

Assemblymember Christopher Ward

California Assembly, District 78

Assemblymember Buffy Wicks

California Assembly, District 14

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***https://www.documentcloud.org/documents/26083258-uc-response-to-lawmakers/. The full letter:

September 3, 2025

The Honorable Scott D. Wiener

Chair, Joint Legislative Budget Committee

1020 N. Street, Room 553

Sacramento, California 94814

Dear Senator Wiener:

Thank you for your letter. We are deeply grateful for your commitment to the University of California—especially at this moment, as we face one of the gravest threats in UC’s 157-year history. Recent actions by the federal government, with the distinct possibility of more to come, place the entire University of California system at risk, and by extension the many Californians and communities we serve.

As you point out, 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. 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. We are heartened that our state’s leaders recognize what the University of California contributes to the state, the country, and the world.

Last week in Sacramento, I met with more than 30 legislators. I hope my message to all was clear: the stakes are high, and the risks are very real. The University of California receives over $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. 

A substantial loss of federal funding would devastate our university and cause enormous harm to our students, our patients, and all Californians. Classes and student services would be reduced, patients would be turned away, tens of thousands of jobs would be lost, and we would see UC’s world-renowned researchers leaving our state for other more seemingly stable opportunities in the US or abroad. It is hard to conceive of a more damaging consequence for our state.

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. We are extraordinarily grateful for the offer of assistance in your letter. If the University loses the federal funding I mentioned earlier, we would need at least $4-5 billion per year to minimize the damage of that loss. That is what fighting for the people of California will take, and I look forward to further discussions regarding how the State can support UC as we strive to protect the greatest public university in the world.

Sincerely,

James B. Milliken President

cc: Senator Benjamin Allen 

Assemblymember Rick Chavez Zbur

Assemblymember Cecilia Aguiar-Curry

Assemblymember David Alvarez

Assemblymember Steve Bennett

Assemblymember Marc Berman

Senator Catherine Blakespear 

Assemblymember Isaac Bryan

Senator Anna Caballero 

Senator Sabrina Cervantes

Assemblymember Sade Elhawary 

Assemblymember Robert Garcia

Senator Lena Gonzalez 

Assemblymember Mark Gonzàlez

Assemblymember John Harabedian 

Assemblymember Gregg Hart

Assemblymember Corey Jackson 

Assemblymember Maggie Krell

Senator Caroline Menjivar 

Assemblymember Al Muratsuchi

Assemblymember Liz Ortega 

Senator Steve Padilla

Senator Sasha Renée Pérez 

Assemblymember Cottie Petrie-Norris

Assemblymember Sharon Quirk-Silva 

Assemblymember Celeste Rodriguez

Senator Susan Rubio 

Assemblymember Nick Schultz

Assemblymember Jose Luis Solache 

Senator Henry Stern

Senator Thomas Umberg 

Assemblymember Christopher Ward

Assemblymember Buffy Wicks 

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