Democratic senators call for probe into possible insider trading over Trump tariff change

Democratic senators call for probe into possible insider trading over Trump tariff change
Democratic senators call for probe into possible insider trading over Trump tariff change
Demetrius Freeman/The Washington Post via Getty Images

(WASHINGTON) — Two Democratic senators are demanding answers from the White House over serious concerns that President Donald Trump’s rollbacks on his tariffs and his social media posts earlier Wednesday may have been part of insider trading among White House allies.

Sens. Adam Schiff, D-Calif., and Ruben Gallego, D-Ariz., sent a letter to Trump’s chief of staff, Susie Wiles, and Trade Representative Jamieson Greer on Thursday asking for an investigation into potential conflicts of interest over the actions that took place Wednesday.

Hours before Trump announced he was rolling back tariffs to 10% to all countries except China, which sent the stock market soaring, he posted on Truth Social: “BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!” and “THIS IS A GREAT TIME TO BUY!!! DJT.”

“This sequence of events raises grave legal and ethics concerns. The President, his family, and his advisors are uniquely positioned to be privy to and take advantage of non-public information to inform their investment decisions,” the senators said in their letter.

Stocks were down Wednesday morning before Trump’s Truth Social post immediately caused markets to spike. Nasdaq soared 12.1% at close, the index’s largest single-day gain since 2021, while the Dow jumped 7.8%, its biggest one-day increase in five years.

The White House has not immediately commented.

The senators asked the Office of Government Ethics to probe whether any White House or executive branch officials, to include special government employees, were informed of the announcement in advance and what financial transactions were made by officials with knowledge of nonpublic information.

The senators also said they wanted answers to several questions about Wednesday’s chain of events, including whether any Trump’s family members were informed of the deliberations prior to Trump’s Truth Social post announcing the tariff changes and if there were any records of communications with executive branch officials, family members or special government employees.

Treasury Secretary Scott Bessent and White House press secretary Karoline Leavitt told reporters Wednesday that the president’s decision was part of his plan and that 75 countries had called to negotiate with the president. They did not provide further details.

Hours later, however, Trump told reporters he made his decision Wednesday morning.

“I think it probably came together early this morning, fairly early this morning. Just wrote it up. I didn’t — we didn’t have the use of, we didn’t have access to lawyers, or it was just brought up. We wrote it up from our hearts,” he said.

Copyright © 2025, ABC Audio. All rights reserved.

Judge to consider blocking controversial Trump deportation policy

Judge to consider blocking controversial Trump deportation policy
Judge to consider blocking controversial Trump deportation policy
ftwitty/Getty Images

(WASHINGTON) — A federal judge in Boston Thursday will consider pumping the brakes on a controversial Trump administration policy of removing migrants to countries where they have no prior connection without allowing them to raise concerns about their safety.

A group of noncitizens with final removal orders filed a federal lawsuit challenging the policy last month, arguing that being removed to countries like El Salvador, Honduras or Panama — despite having no connection to those countries — risks their safety and violates their rights.

U.S. District Judge Brian Murphy, a Biden appointee who temporarily blocked the policy last month, will consider extending his order and certifying a class of noncitizens who would be protected from removal to a so-called third country.

“The need for preliminary injunctive relief in this case is vital,” lawyers representing the men argued in a recent court filing. “Indeed, it may be the difference between safety and torture, life and death, for many noncitizens, including ones who have been living and working in this country for decades.”

The hearing also comes as the Trump administration faces new allegations that they violated Judge Murphy’s order by removing more than a dozen migrants to El Salvador last month despite the judge’s order barring such transfers.

The plaintiffs who brought the lawsuit argue that the Department of Homeland Security’s policy results in the removal of migrants to third countries without providing them a chance to raise concerns about potentially being persecuted, tortured, or killed. In one instance, they allege that the Trump administration removed a Guatemalan man to Mexico without giving him the chance to raise concerns that he was previously raped there and now fears prosecution in that country.

“Defendants have resorted to violating noncitizens’ clear statutory rights to apply for protection from removal to countries where they face persecution or torture,” the lawyers wrote.

Lawyers with the Department of Justice have argued that Judge Murphy lacks the jurisdiction to intervene in DHS’ policies after a final order of removal has been issued by an immigration judge.

They have also argued that a preliminary injunction is no longer necessary because DHS implemented a new policy of getting “diplomatic assurances that aliens removed from the United States will not be persecuted or tortured,” or screening noncitizens for their eligibility for protections under the United Nations’ Convention Against Torture.

“As this Court indicated during the hearing on Plaintiffs’ motion, Defendants are entitled to issue guidance to satisfy any potential due process concerns. Defendants have now done so,” they argued.

But lawyers for the men who brought the lawsuit have argued that those measures are “woefully inadequate” and pointed to two recent examples where they allege that DHS potentially violated the court’s temporary order.

Two days after Judge Murphy blocked the deportations, the Trump administration announced that it had removed 17 alleged members of Tren de Aragua and MS-13 to El Salvador’s notorious CECOT mega-prison. According to the plaintiffs, at least two of the men on those flights had final orders of removal to Venezuela and were never given the right to challenge their removal to El Salvador.

According to the plaintiff’s lawyers, one of those men is Maiker Espinoza Escalona, who entered the United States last year with his partner Yorely Bernal Inciarte and their one-year-old baby.

After the three turned themselves in to immigration authorities, they were separated, their family told ABC News. Inciarte has been detained at a detention center in El Paso, Texas, their baby has been in government custody, and Escalona is detained at CECOT in El Salvador, according to Inciarte’s mother.

The Trump administration alleged that Escalona is a member of the Venezuelan gang Tren de Aragua, an accusation his family denies.

“They are liars,” said Inciarte’s mother Raida of the Trump administration. “I cannot believe that half of Venezuela is Tren de Aragua. That can’t be.”

“For them to be sent [to El Salvador] you have to investigate and prove they are what they are being accused of,” Raida said. “We’re distraught, I don’t wish this on anyone.”

Copyright © 2025, ABC Audio. All rights reserved.

Johnson tries again to vote on Trump-backed budget blueprint after GOP hard-liners balked

Johnson tries again to vote on Trump-backed budget blueprint after GOP hard-liners balked
Johnson tries again to vote on Trump-backed budget blueprint after GOP hard-liners balked
Andrew Harnik/Getty Images

(WASHINGTON) — House Speaker Mike Johnson on Thursday will try again to hold a vote on a budget blueprint to fund President Donald Trump’s agenda.

The House is expected to vote in the 10 a.m. hour on the measure, which was passed by the Senate last week.

“I’m happy to tell you that this morning, I believe we have the votes to finally adopt the budget resolution so we can move forward on President Trump’s very important agenda for the American people,” Johnson said at a news conference alongside Senate Majority Leader John Thune.

Johnson suffered a setback on Wednesday night when he was forced to scrap a planned vote due to opposition from a small group of Republican hardliners who are concerned the budget would add to the nation’s deficit.

Johnson said he had “very productive” deliberations with members on Wednesday night and on Thursday sought to highlight efforts to slash spending by more than a trillion dollars.

“We are committed to finding at least $1.5 trillion in savings for the American people while also preserving our essential programs,” Johnson said.

Thune seemed less enthusiastic about the target for deficit reduction but meekly endorsed the House’s lofty goal for budget savings — announcing the Senate’s ambition for fiscal sustainability is “aligned with the House.”

“We have got to do something to get the country on a more fiscally sustainable path and that entails us taking a hard scrub of our government, figuring out where we can find those savings,” Thune said. “The speaker has talked about $1.5 trillion. We have a lot of United States senators who believe that is a minimum and we’re going to do everything we can to be as aggressive as possible.”

President Donald Trump, who has been personally involved in trying to get the measure adopted, weighed in on Thursday morning that Republicans were “getting close.”

“‘The Big, Beautiful Bill’ is coming along really well. Republicans are working together nicely. Biggest Tax Cuts in USA History!!!,” Trump wrote in a post to his conservative social media platform

Johnson faces a short window to get the measure over the finish line before the House is slated to go on its two-week April recess.

The speaker can only afford to have only three defections from his caucus with all members voting and present.

House GOP leaders have scrambled for the past week to lock down the votes, after more than 20 Republicans expressed concern that the Senate’s resolution set a floor of just $4 billion in savings. Now, Johnson says he has the support needed.

“Our aim is to deliver on our promises,” Johnson said.

ABC News’ Alexandra Hutzler contributed to this report.

Copyright © 2025, ABC Audio. All rights reserved.

Global stock markets climb after Trump pauses most tariffs for 90 days

Global stock markets climb after Trump pauses most tariffs for 90 days
Global stock markets climb after Trump pauses most tariffs for 90 days
Anna Moneymaker/Getty Images

(NEW YORK) — Asian and European markets rallied in Thursday trading in response to President Donald Trump’s dramatic decision to suspend planned tariffs on nearly all American trading partners for 90 days — with the exception of China.

Key Asian indices recorded notable recoveries on Thursday — marking a reprieve for most after a week of turbulence and selloffs driven by fears of escalating trade wars and recessions.

In Japan, the Nikkei 225 closed 9.1% and the broader TOPIX index closed up 8%. South Korea’s Kospi closed up nearly 6.6%.

Taiwan’s Taiex index jumped 9.3% and Australia’s ASX 200 rose 4.5%.

Key Chinese markets were also in the green, despite Trump’s decision to raise tariffs on Chinese goods to a cumulative total of 125%. The president alleged a “lack of respect” from Beijing to explain the latest hike, his latest broadside coming after China announced 84% reciprocal tariffs on U.S. goods on Wednesday.

Hong Kong’s Hang Seng Index climbed 2%, the Shanghai Composite Index jumped 1.1% and the Shenzhen Component Index rose 2.2%.

In Europe, the pan-continental STOXX 600 index jumped more than 7%.

Upon opening, Britain’s FTSE 100 climbed 6%, France’s CAC 40 6.4%, Germany’s DAX 8%, Italy’s FTSE MIB 7.5% and Spain’s IBEX 7.2%.

U.S. markets closed after major rebounds on Wednesday following Trump’s announcement that most of his sweeping tariffs would be paused.

The Dow Jones Industrial Average climbed 2,962 points, or 7.8%, marking the index’s best day since 2020. The S&P 500 jumped 9.5%, while the tech-heavy Nasdaq soared 12.1%.

U.S. stock futures dipped ahead of Thursday’s trading session. As of early Thursday morning, Dow futures were down 1.1%, S&P 500 futures down 1.53% and Nasdaq futures down 1.8%.

ABC News’ Max Zahn contributed to this report.

Copyright © 2025, ABC Audio. All rights reserved.

Inflation cooled but egg prices soared in March, before Trump’s tariff escalation

Inflation cooled but egg prices soared in March, before Trump’s tariff escalation
Inflation cooled but egg prices soared in March, before Trump’s tariff escalation
Kinga Krzeminska/Getty Images

(NEW YORK) — Consumer prices rose 2.4% in March compared to a year ago, marking a cooldown during a period that preceded the recession warnings and market turmoil following President Donald Trump’s recent escalation of tariffs. The reading came in lower than economists expected.

Even as overall cost hikes slowed, egg prices soared 60% higher than a year prior. Bird flu has decimated the egg supply, lifting prices higher.

The cooldown is owed in part to a drop in energy prices, as gasoline prices fell about 6% from the previous month, U.S. Bureau of Labor Statistics data showed. Food prices rose 0.4% compared to the previous month, however, putting upward pressure on the cost of living.

Core inflation — a closely watched measure that strips out volatile food and energy prices — increased 2.8% over the year ending in March, which registered the lowest one-year gain in that index since March 2021, data showed.

The fresh data arrives a day after a day after Trump paused some tariffs and U.S. stocks rallied.

In February, year-over-year inflation rose 2.8% compared to a year prior.

Trump last week issued 10% tariffs on imports from nearly all countries, as well as so-called “reciprocal tariffs” targeting about 75 nations — but Trump announced a 90-day pause of those reciprocal tariffs on Wednesday.

Alongside the pause of some tariffs, Trump announced additional tariffs on China, increasing the cumulative duties on Chinese goods from 104% to 125%. The escalation came in response to a fresh round of tariffs from China that raised levies on U.S. goods to 84%.

Economists widely expect the tariffs that remain in place to increase prices for some consumer goods, though the exact timing and extent of the price hikes remain unclear.

Last month, Federal Reserve Chair Jerome Powell said Trump’s tariffs were partly to blame for price increases that had taken place in February.

Despite escalating trade tensions and market turbulence since Trump took office in January, the economy remains in solid shape by several key measures.

The unemployment rate stands at a historically low level. Meanwhile, inflation sits well below a peak attained in 2022, though price increases register nearly a percentage point higher than the Fed’s goal of 2%.

Hiring surged in March, blowing past economists’ expectations and accelerating job growth from the previous month, government data last week showed.

Key indicators “still show a solid economy,” Powell said on Friday.

However, tariffs threaten to derail hiring and worsen inflation, multiple analysts previously told ABC News, before Trump paused “reciprocal tariffs” for 90 days.

Far-reaching levies increase the likelihood of a recession by driving up prices, sapping consumer spending, slowing business activity and risking layoffs, they said.

Copyright © 2025, ABC Audio. All rights reserved.

Democratic Party ‘doubling down’ on town hall meetings targeting Republican-held districts

Democratic Party ‘doubling down’ on town hall meetings targeting Republican-held districts
Democratic Party ‘doubling down’ on town hall meetings targeting Republican-held districts
ABC News

The Democratic National Committee — continuing its push to host town halls in Republican-held districts — is announcing a new set of town halls focused on the Republican-led budget bill and featuring high-profile officials such as Sen. Cory Booker, D-N.J., ABC News has learned exclusively.

These “People’s Town Halls,” which will be held during Congress’ two-week April recess that begins next week, comes as Democrats look to hammer Republicans and the White House and to reach out to voters over economic concerns and affordability.

The Democrats are focusing in large part on a budget blueprint that President Donald Trump has said will help his administration’s priorities, including tax cuts and border security investments.

But that bill has been criticized by Democrats as potentially leading to cuts to key programs Americans rely on, such as health care or food assistance, during a time of economic uncertainty.

“In both red and blue communities, people are sick and tired of Donald Trump and Elon Musk destroying the economy, threatening health care and Social Security, and making life worse for families,” DNC chair Ken Martin said in a statement.

“In April, we’re doubling down with leading Democratic voices joining even more town halls in key districts across the country. Republicans still want to pretend like their constituents don’t exist, but we believe Americans deserve to have their voices heard.”

Republicans have argued that the budget blueprint does not and will not threaten any benefits or entitlements, and Trump has said his administration will not cut or threaten Social Security benefits. Republicans have also pushed back against claims they are not hosting town halls, saying that they are continuing to host in-person events or are hearing from constituents by phone and virtually. Some members have faced fierce pushback from constituents at their events.

The Democratic Party town halls during the recess are set to feature high-profile congressional figures — including Booker, Connecticut Sen. Chris Murphy, Arizona Rep. Greg Stanton and Florida Rep. Maxwell Frost, according to the DNC.

Booker received heightened attention in early April after breaking a Congressional record, speaking for more than 24 hours in a marathon speech on the Senate floor protesting the national “crisis” he said President Donald Trump and key advisor Elon Musk had created.

“The Democratic Party is at its weakest when it’s concerned about the party. It’s at its strongest when it’s concerned about the people, when it’s bigger and broader than any narrow, political analysis,” Booker told ABC News’ “This Week” anchor George Stephanopoulos on Sunday.

The Democratic town halls will be held during the recess on April 13 in Arizona’s 6th District, on April 22 in Pennsylvania’s 8th District, on April 24 in Colorado’s 8th District and North Carolina’s 9th District, and on April 25 in Missouri’s 2nd District.

Two of those districts — Pennsylvania’s 8th, represented by Rep. Robert Bresnahan, and Colorado’s 8th, represented by Rep. Gabe Evans, were flipped by Republicans in the 2024 election.

North Carolina’s 9th District is represented by Rep. Richard Hudson, the chair of the National Republican Campaign Committee (NRCC). In March, Hudson encouraged House Republicans to do more virtual events instead of in-person town halls, although the NRCC said this was a suggestion to help members reach more constituents.

The Democrats’ new batch of town halls is also a joint effort between the DNC and two of its affiliates, the Democratic Congressional Campaign Committee (DCCC) and the Association of State Democratic Committees (ASDC).

“While vulnerable Republicans continue to run scared because they’re voting to raise costs, gut Medicaid, and threaten working families livelihoods, we’re going to make sure voters know they don’t have to wait until Election Day to hold them accountable,” DCCC chair Rep. Suzan DelBene, D-Wash., said in a statement.

According to the DNC, those three arms of the party have hosted 71 town halls in 35 states and territories in the past three weeks altogether, with tens of thousands of attendees overall.

ABC News’ Mariam Khan, Lauren Peller and Isabella Murray contributed to this report.

Copyright © 2025, ABC Audio. All rights reserved.

Ksenia Karelina, US ballet dancer, released from Russia in prisoner exchange

Ksenia Karelina, US ballet dancer, released from Russia in prisoner exchange
Ksenia Karelina, US ballet dancer, released from Russia in prisoner exchange
ABC News

LONDON — U.S.-Russian dual citizen Ksenia Karelina was released from Russian prison in an overnight prisoner exchange, Secretary of State Marco Rubio announced on Thursday.

The exchange took place overnight in Abu Dhabi in the United Arab Emirates. Karelina’s lawyer Mikhail Mushailov confirmed to ABC News that she had been released.

Secretary of State Marco Rubio confirmed the exchange in a tweet, writing, “American Ksenia Karelina is on a plane back home to the United States. She was wrongfully detained by Russia for over a year and President Trump secured her release.”

A U.S. official told ABC News that American and Russian intelligence agencies took the lead in negotiating the prisoner swap.

CIA Director John Ratcliffe said in a statement, “Today, President Trump brought home another wrongfully detained American from Russia. I’m proud of the CIA officers who worked tirelessly to support this effort and we appreciate the government of UAE for enabling the exchange.”

A CIA spokesperson told ABC News that “much of the swap was negotiated by the U.S. government, with CIA playing a key role engaging with Russian intelligence.”

“Through these engagements, CIA negotiated with Russia and worked closely with domestic and foreign partners, including the UAE, to carry out the exchange,” the spokesperson said. “We also collaborated closely with counterparts at agencies across the [U.S. government] to facilitate this exchange.”

Russia’s Federal Security Service also confirmed Karelina’s release, saying she had been pardoned via a decree from President Vladimir Putin. The FSB said the exchange was made at Abu Dhabi airport with the mediation of the UAE.

German-Russian citizen Artur Petrov — who was detained in Cyprus in 2023 at the request of the U.S. and later extradited — was exchanged for Karelina, the service said.

A Justice Department notice of his arrest said Petrov was accused of involvement in a scheme to procure U.S.-sourced microelectronics subject to export controls on behalf of a Russia-based supplier. The components were intended for manufacturers supplying weaponry and other equipment to the Russian military, the notice said.

A 2024 statement related to Petrov’s extradition to the U.S. said he was part of a network that secretly supplied Russia’s military industrial complex with “critical U.S. technology, including the same types of microelectronics recovered from Russian weapons on Ukrainian battlefields.”

Karelina — a ballet dancer — was serving a 12-year prison sentence in a penal colony, having been convicted of treason in August 2024. She was accused of organizing fundraisers for Ukraine’s military, attending pro-Ukraine rallies and posting social media messages against Russia’s war in Ukraine.

Her boyfriend, Chris Van Heerden, spoke to ABC News Live hours after her sentencing, saying she did nothing wrong. He said all she did was donate $50 to a Ukrainian charity.

This is a developing story. Please check back for updates.

ABC News’ Joe Simonetti, Cindy Smith, Tanya Stukalova and Shannon K. Kingston contributed to this report.

Copyright © 2025, ABC Audio. All rights reserved.

Supreme Court declines to stop Karen Read retrial

Supreme Court declines to stop Karen Read retrial
Supreme Court declines to stop Karen Read retrial
Photo by John Tlumacki/The Boston Globe via Getty Images

(WASHINGTON) — The U.S. Supreme Court has denied Karen Read’s emergency request to delay her state murder trial until it reviews her appeal. No explanation was given for the denial of her request.

Read had filed an emergency petition on Monday, asking the court for a stay of her retrial — which has begun jury selection — pending review by the high court on her claims of constitutional violation.

Justice Ketanji Brown Jackson denied the request on behalf of the court.

Read is accused of killing her boyfriend, Boston police officer John O’Keefe, in January 2022. Prosecutors alleged Read hit O’Keefe with her vehicle and left him to die as Boston was hit with a major blizzard. Read has denied the allegations and maintained her innocence.

Read claims her retrial would violate double jeopardy after several jurors from her first trial said she was acquitted of two of the three counts. The judge declared a mistrial in Read’s first trial last year after the jury could not reach a unanimous verdict.

She was charged with first-degree murder, manslaughter while operating a motor vehicle under the influence and leaving the scene of a fatal accident. She pleaded not guilty.

Read’s attorneys have asked multiple appeals courts — and now the Supreme Court — to dismiss the charges of second-degree murder and leaving the scene of a fatal accident in the retrial. They argued in court filings that retrying her on the charges would violate double jeopardy protections because, based on subsequent statements from four jurors, the jury had reached a unanimous decision to acquit Read on the charges.

All of those requests have been rejected by judges.

Three new jurors were seated on Wednesday, bringing the running total to 15. The panel is comprised of eight men and seven women.

The court seeks to seat 16 jurors in total, with12 deliberating the case and four serving as alternates.

Read told reporters outside the courthouse on Wednesday that the defense has used 11 of their 16 challenges, and the commonwealth has used 12 during jury selection, according to WCVB.

Copyright © 2025, ABC Audio. All rights reserved.

Idaho college killings: Words ‘psychopath,’ ‘sociopath’ banned from Bryan Kohberger’s trial

Idaho college killings: Words ‘psychopath,’ ‘sociopath’ banned from Bryan Kohberger’s trial
Idaho college killings: Words ‘psychopath,’ ‘sociopath’ banned from Bryan Kohberger’s trial
Angela Palermo/Idaho Statesman/Tribune News Service via Getty Images

(MOSCOW, Idaho) — University of Idaho murders suspect Bryan Kohberger returned to court on Wednesday for a high-stakes hearing to decide what evidence will be allowed at his trial, which is set to begin in August.

The use of particular language has been a major point of contention in the ongoing hearing.

Judge Steven Hippler agreed to the defense’s request to ban the words “psychopath” and “sociopath” from the trial.

The defense asked that the phrases “touch DNA” and “contact DNA” be excluded, arguing that it is misleading and can be misunderstood by a jury.

Hippler said he was not inclined to “police phraseology” and noted the concern that if a “banned word” is accidentally used in the courtroom it could result in a mistrial. Hippler encouraged council to avoid the terms but said he will not “police experts in the field” and encouraged legal teams to not “underestimate the reasonableness and intelligence of jurors.”

Kohberger’s defense team also worked to ensure their client will have the opportunity for physical support from his family during the trial.

The judge asked the state to call Kohberger’s family members who are witnesses early in the trial so they can sit behind him in the courtroom after they testify.

“I think their ability to be here to see the trial is important,” Hippler said.

Kohberger is accused of fatally stabbing Ethan Chapin, Kaylee Goncalves, Madison Mogen and Xana Kernodle at the girls’ off-campus house in Moscow in the early hours of Nov. 13, 2022. Chapin, Kernodle’s boyfriend, was sleeping over at the time.

Kohberger, a criminology Ph.D. student at nearby Washington State University at the time of the murders, was arrested in December 2022. He’s charged with four counts of first-degree murder and one count of burglary, and a not guilty plea has been entered on his behalf.

The judge said Wednesday that he will allow a 3D model of the home at trial.

Many arguments have still yet to be ruled on by the judge.

One point of contention is a description of the intruder from one of the two roommates who survived the murders. The roommate said in the middle of the night she saw a man with “bushy eyebrows” walking past her in the house, according to court documents.

The defense wants that description banned during trial. The defense argues the roommate’s account lacks credibility, claiming that in interviews with police she admitted to drinking heavily throughout the day and that she had an “absolute lack of certainty.”

The defense is also pushing for the death penalty to be taken off the table if Kohberger is convicted, citing what they say is Kohberger’s autism spectrum disorder.

“When it comes to evidentiary hearings, the prosecution’s goal is trying to admit as much damning evidence as possible,” ABC News legal contributor Brian Buckmire said, while the defense tries “to limit how much evidence comes in that is detrimental to their case.”

The hearing is ongoing Wednesday and may continue on Thursday.

Copyright © 2025, ABC Audio. All rights reserved.

Trump administration halts $1 billion for Cornell, $790 million for Northwestern, White House officials say

Trump administration halts  billion for Cornell, 0 million for Northwestern, White House officials say
Trump administration halts $1 billion for Cornell, $790 million for Northwestern, White House officials say
Chris Walker/Chicago Tribune via TNS via Getty Images, FILE

(WASHINGTON) — The Trump administration has frozen more than $1 billion in federal funding to Cornell and $790 million to Northwestern, as the government investigates alleged civil rights violations at the schools, according to two White House officials.

“On Monday, several Trump administration agencies froze roughly $790M of federal funding and roughly $1.05B of federal funding from Northwestern and Cornell, respectively,” a senior administration official told ABC News. “The money was frozen in connection with several ongoing, credible, and concerning Title VI investigations.”

The funding pause mostly involves grants from and contracts with the Department of Agriculture, Defense, Education and Health and Human Services, according to White House officials.

Northwestern said in a statement to ABC that it was informed by “members of the media” that the federal government plans to “freeze a significant portion of our federal funding. The University said it “has not received any official notification.”

“Federal funds that Northwestern receives drive innovative and life-saving research,” the University said. “This type of research is now at jeopardy. The University has fully cooperated with investigations by both the Department of Education and Congress.”

Cornell wrote in a statement they have received “more than 75 stop work orders from the Department of Defense related to research that is profoundly significant to American national defense, cybersecurity, and health.”

“We are actively seeking information from federal officials to learn more about the basis for these decisions,” Cornell said.

“The affected grants include research into new materials for jet engines, propulsion systems, large-scale information networks, robotics, superconductors, and space and satellite communications, as well as cancer research,” the school continued.

The New York Times first reported on the funding freeze.

Legal experts are questioning the authority of the Trump administration to pause the federal funding.

“This is completely lawless, as far as I can tell, to the extent that we don’t even know what legal provision the government is relying upon,” Genevieve Lakier, professor of law at the University of Chicago, said.

If the funding halt is justified under the Civil Rights Act, as White House officials have told ABC News, Lakier said the law requires there to be a set of procedures followed and notice given.

“There has to be a hearing. You have to give members of Congress 30 days before you do it. You have to give the school 30 days. You have to allow the right to appeal. None of this is being followed,” Lakier said.

Michael Dorf, professor at Cornell Law School, echoed Lakier’s assessment.

“There’s a federal statute that explains if agencies and the government believe a funding recipient is not complying with its civil rights obligations, there’s a whole set of procedures they have to follow before you cut those off,” Dorf said. “The government has followed none of those procedures.”

The move comes as the administration doubles down on allegations of antisemitic conduct and harassment from elite universities.

The Department of Education and other agencies are reviewing Harvard University for allegedly fostering antisemitism on its campus. The administration stripped Columbia University of $400 million in grants earlier this month after a task force investigation says it found inaction by the school to protect Jewish students.

In response to the review, Harvard President Alan Garber released a statement saying, “We fully embrace the important goal of combatting antisemitism, one of the most insidious forms of bigotry.”

Copyright © 2025, ABC Audio. All rights reserved.