Trump Deals Another Blow To Universities
Washington, D.C. – President Trump’s administration is moving decisively to make sure American taxpayers finally see a return on the billions they pour into university research every year. Commerce Secretary Howard Lutnick revealed a plan to secure a portion of the huge profits that universities generate from patents created with federal funding.
This move marks a historic shift in government policy, ensuring taxpayers finally see returns on their investments while holding elite institutions accountable.
Lutnick: Taxpayers Get “Zero” While Universities Get Rich
In a Wednesday interview with Axios, Lutnick highlighted the imbalance between taxpayer funding and university profits.
“The scientists get the patents, the universities get the patents, and the U.S. government—the one footing the $50 billion bill—gets zero,” Lutnick said.
For decades, universities have been allowed to keep full control of patents to encourage innovation and speed up technological development. But over time, this system has been abused, with universities focusing more on grant money than on turning discoveries into real-world solutions.
According to a 2024 study cited by Axios, many universities actually earn far more money writing federal grant proposals than by commercializing their patented inventions.
Billions Could Flow Back to Taxpayers
Lutnick’s plan could redirect billions of dollars back into the U.S. economy.
“In business, if I give someone 100% of the money, I expect half the profits in return,” Lutnick explained. “If American taxpayers fund the research, they deserve to share in the rewards.”
This commonsense approach resonates strongly with Americans who are tired of footing the bill for elite universities while struggling to pay higher taxes.
Trump Administration Taking Immediate Action
The Trump administration has already begun implementing this policy. In August, a formal letter was sent to Harvard University, demanding a full accounting of patents developed with federal funding.
Lutnick confirmed that the University of California system will soon receive a similar notice.
“We’ll start with a few universities and then expand into a broader master agreement,” he said.
This strategy mirrors other Trump economic policies, such as the administration’s decision to take a stake in Intel and secure a share of Nvidia’s AI chip sales in China. The message is clear: America will no longer give away its resources without fair compensation.
Cutting Off the Free Ride
For decades, universities have profited immensely from taxpayer generosity while offering little in return. President Trump has already begun cutting unnecessary federal funding, forcing these institutions to rely on private partnerships instead of endless government subsidies.
By holding these institutions accountable, the Trump administration is putting America First and ensuring that every dollar of taxpayer money is used responsibly.
Why This Matters to Seniors and Families
Many older Americans and working families have watched tuition costs skyrocket while their taxes helped fund wealthy universities. This policy ensures that the public benefits directly from the breakthroughs their money made possible.
Instead of rewarding elite administrators and tenured academics, this move will help protect Social Security, Medicare, and essential programs by redirecting funds back into the federal budget.
The Bottom Line
The Trump administration’s bold push to claim a share of university patent profits represents a historic victory for taxpayers. By demanding accountability and financial responsibility, President Trump is standing up to powerful elites and putting the interests of hardworking Americans first.
This is more than just a policy change—it’s a message that America will no longer be exploited by institutions that take without giving back.
