Trump administration freezes $108M intended for Duke and Duke Health, reports say
The Trump administration has frozen $108 million in federal funds that had been designated for Duke University and Duke Health, CNN and Fox News reported Tuesday evening.
The administration also has ordered an investigation of the school and health center for what it calls “the illegal use of racial preferences” in recruitment, admissions, financial aid, mentoring, hiring and promotion.
The freeze was first reported by Fox News, based on information it attributed to “a senior administration official.” The News & Observer has not independently confirmed the report.
A Duke spokesperson told The N&O Tuesday they would look into the report.
In an email Wednesday, Health and Human Services spokesperson Emily Hilliard said the federal department “does not comment on open investigations.”
Neither Fox nor CNN identified where the money was coming from or what Duke was supposed to use it for.
The funding freeze report comes a day after a letter sent to Duke leaders Monday, where the administration threatened to withhold all federal funding from the school and health care center. Health and Human Services Secretary Robert Kennedy Jr. and Education Secretary Linda McMahon wrote alleged discriminatory practices would “render Duke Health unfit for any further financial relationship with the federal government.”
“This vile racism carries a host of excuses,” the two Trump officials wrote without providing examples of alleged discrimination. “And hides behind a smug superiority that such ‘benefitted’ races cannot compete under merit-based consideration.”
The administration ordered Duke to establish a “Merit and Civil Rights Committee” to investigate the allegations. It gave the school 10 business days to decide whether it will form the committee and 20 days to provide documents and information to the Department of Health and Human Services Office for Civil Rights.
Duke University has not yet provided a statement on Monday’s letter or whether it will form this committee.
Duke receives a substantial amount of federal funding each year, its health system included. So far in 2025, Duke University has been awarded nearly $300 million from the National Institutes of Health, the most of any North Carolina institution. The school last year received more than $580 million from NIH.
Last week, the university reported that nearly 600 employees at Duke have accepted voluntary buyouts amid significant threats to the university’s funding.
In August, the university will make involuntary layoffs with the scale to be determined after university units identify further non-personnel budget cuts they can implement.
This is a developing story and will be updated.
This story was originally published July 29, 2025 at 7:27 PM.