Columbia University to End Race-Exclusive Fellowships in $2.7 Million Settlement

Columbia Agrees to End Race-Restricted Fellowships

Columbia University has agreed to stop awarding race-exclusive graduate fellowships and will pay $2.7 million to settle a federal discrimination lawsuit, according to two university officials familiar with the agreement. The 23-page settlement, reached during a Feb. 4 mediation session in Manhattan, is scheduled for filing in U.S. District Court for the Southern District of New York on Feb. 10.

The lawsuit, filed in October 2025 by three graduate students, challenged a set of fellowships reserved for students who identify as Black, Hispanic, or Native American. The plaintiffs argued the programs violated Title VI of the Civil Rights Act of 1964 and the Equal Protection Clause, citing the Supreme Court's 2023 decision in Students for Fair Admissions v. Harvard and UNC.

A plaintiff's attorney involved in the case said the settlement covers five fellowship programs administered by Columbia's Graduate School of Arts and Sciences and the School of International and Public Affairs. The affected programs distributed roughly $2.3 million annually in tuition support and stipends, the attorney said. The named programs included the Mellon Mays Diversity Fellowship and the Ford Foundation Predoctoral Fellowship pipeline, though the settlement applies only to Columbia's administration of those funds. The complaint alleged that Columbia maintained a separate application review track for the fellowships and excluded white and Asian American students from consideration regardless of financial need or academic merit.

Under the agreement, Columbia will modify eligibility criteria to remove race as a standalone requirement while allowing applicants to discuss how their background informs their research, the university officials said. The $2.7 million payment will cover legal fees, damages, and a scholarship fund open to all students regardless of race.

Mediation Produced Deal Ahead of March Trial

The settlement emerged from a six-hour mediation before a federal magistrate judge on Feb. 4, according to a student involved in the case. The session began at 9:30 a.m. in the federal courthouse at 500 Pearl Street and included attorneys from the Pacific Legal Foundation, Columbia's general counsel's office, and representatives from the university's diversity office.

The case had been set for trial on March 9, with discovery deadlines approaching in mid-February. A plaintiff's attorney said the university moved to settle after internal estimates showed litigation costs could exceed $4 million even if Columbia prevailed. The attorney said Columbia's insurance carrier pushed for resolution during a Jan. 30 conference call that included outside counsel from Kirkland and Ellis.

The settlement requires Columbia to report compliance to the court every six months for 18 months. The first report is due Aug. 15. A federal judge must approve the agreement before it takes effect, with a fairness hearing tentatively scheduled for March 3.

Two university officials said senior university leadership and the board of trustees signed off on the deal during a Feb. 6 executive session. The officials said the university plans to issue a statement emphasizing its commitment to diversity while acknowledging the legal landscape has shifted since the SFFA ruling.

Broader Implications for Higher Education

The settlement is likely to accelerate similar challenges at peer institutions, education lawyers said. Since the SFFA decision, at least 14 lawsuits have been filed against race-exclusive scholarships, pipeline programs, and faculty hiring initiatives at universities across the country.

A plaintiff's attorney in the Columbia case said three other universities, including one in the Big Ten and two in the Ivy League, have reached out to discuss settlement structures. The attorney declined to name the institutions, citing confidentiality. Legal observers said the Columbia settlement could serve as a template for resolving cases at institutions that have maintained similar race-restricted programs in graduate education, faculty recruitment, and undergraduate research initiatives.

The Education Department's Office for Civil Rights has also opened investigations into race-exclusive programs at five public universities since Jan. 1, according to a department official familiar with the caseload. The official said preliminary findings in two cases could lead to resolution agreements by late February.

Columbia's agreement does not admit liability and includes a broad release of claims. Still, the payment amount and structural changes to the fellowship programs represent one of the largest settlements of its kind since the SFFA ruling. The case is being closely watched by university general counsels, who have struggled to revise race-conscious programs without running afoul of the Supreme Court's prohibition on racial preferences in admissions. Several general counsels have convened working groups since January to audit scholarship criteria, mentorship eligibility, and summer pipeline programs for racial restrictions, according to two university officials at peer institutions.

Watch for the court filing on Feb. 10 and Columbia's public statement the same day. The March 3 fairness hearing will determine whether the settlement receives final approval.