The Trump administration is seeking a $1 billion settlement from the University of California, Los Angeles, CNN has exclusively learned, marking the latest effort by the White House to shape higher education and extract significant concessions from universities.

The grants were terminated over alleged DEI violations. University of California attorneys argued the actions were arbitrary and capricious.

The Department of Justice’s proposed $1 billion fine to the University of California at Los Angeles over alleged antisemitism was met with fighting words by the state’s Democrat governor. Gov. Gavin Newsom threatened to sue the Trump administration Friday,