Major Australian Universities Hit By US Funding Cuts Amid Trump's 'America First' Policy Shift

The Trump administration has halted funding for six major Australian universities, citing a shift in focus to support the U.S. president's "America First" agenda, with the Australian National University (ANU) being the first to publicly acknowledge the funding loss.

In an email to staff, ANU's vice-chancellor, Genevieve Bell, confirmed that the university was impacted by the U.S. funding cuts, The Guardian reported.

"It is hard to ignore the broader contexts in which we are operating – a looming federal election and a growing complexity of geo-political forces impacting us here in Australia," Bell stated. "We are committed to supporting our researchers and the work we do here, in all the ways we can."

The suspension of research grants affects six universities -- Monash University, ANU, University of Melbourne, University of Sydney, University of New South Wales, and University of Western Australia.

The Trump administration told Australian universities that the funding halt was to prioritize administration goals and avoid "DEI, woke gender ideology, and the green new deal."

Just a week after President Donald Trump took office, the U.S. Office of Management and Budget issued a memo, announcing a "temporary pause" in funding for Australian universities.

"The use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve," the memo read.

U.S. funding crucial for Australian research

While Australian universities rely on a mix of government grants, international students, and partnerships with overseas funders, the U.S. is the largest research partner, providing millions in research funding annually, ABC reported.

In 2024, Australia's research organizations received approximately $386 million from the U.S. government, which was roughly equivalent to half of the funding provided by the Australian government's Research Council.

The freeze on U.S. funding has raised concerns about foreign influence on Australian research.

Last week, the Trump administration was accused of "blatant foreign interference" after U.S. researchers sent a questionnaire asking Australian academics to confirm their alignment with U.S. government interests.

"This is really concerning and the thin end of the wedge in terms of where it potentially could go," Group of Eight CEO Vicki Thomson said.

The questionnaire included topics on free speech, potential connections to communist or anti-American entities, drug policies, U.S. government transgender policies, and Christianity.

Some of the questions were:

• Can you confirm that your organization does not work with entities associated with communist, socialist, or totalitarian parties, or any party that espouses anti-American beliefs?
• Can you confirm that your organization has not received ANY funding from the PRC (including Confucius Institutes and/or partnered with Chinese state or non-state actors), Russia, Cuba, or Iran?
• Can you confirm this is not a climate or "environmental justice" project or include such elements?

Horizon Europe as a potential alternative

The Australian Academy of Science has called for urgent action to reduce dependency on U.S. funding. Academy president, Professor Chennupati Jagadish AC, warned that Australia could be "dangerously unprepared" for the long-term impact.

Universities Australia CEO, Luke Sheehy, also urged the government to look to alternative funding sources, such as Horizon Europe, a major international research initiative.

Horizon Europe, a €95.5 billion scientific collaborative fund, could be considered as a reliable funding stream for Australian universities. With 20 non-European partners, including New Zealand, the UK, and Canada, Horizon Europe is seen as a potential lifeline as the U.S. becomes an increasingly unreliable partner for Australian research.