Duke Absorbs a $108 Million Freeze With Cuts and Layoffs Rather Than Settle or Sue

Federal grants and contracts worth about $108 million, largely supporting Duke Health and the medical school, were frozen while the Education Department investigated the selection of Duke Law Journal editors and the Department of Health and Human Services opened a Title VI inquiry. The administration's stated concerns centred on alleged race-conscious hiring, admissions, scholarship and mentoring practices.

Duke neither reached a settlement nor filed suit. It instead absorbed the loss internally, implementing budget reductions reported at roughly $300 million or more and eliminating approximately 700 positions. The case illustrates a third response available to institutions beyond paying or litigating, and one whose costs fall on staff rather than on an agreement.

As of a February 2026 review of the university's first year under the freeze, no settlement had been reached and no lawsuit filed. The current status of the frozen funds could not be established.