The Trump administration is immediately pulling $400m (£310m) of federal funding from Columbia University, saying it failed to fight antisemitism on campus.
A statement by four federal agencies said the funding cut was due to “continued inaction in the face of persistent harassment of Jewish students”.
The New York college was the epicentre of pro-Palestinian protests on college campuses last year against war in Gaza and US support for Israel.
Earlier this week, President Trump had threatened to pull funding from schools and universities that allow “illegal protests”.
Secretary of Education Linda McMahon said in Friday’s statement that Jewish students on campus who had been the victims of “relentless violence, intimidation, and antisemitic harassment on their campuses” were “ignored” by university authorities.
“Today, we demonstrate to Columbia and other universities that we will not tolerate their appalling inaction any longer,” she said.
A spokesman for Columbia said that the university is reviewing the announcement, and pledged to work with the government to restore its federal funding.
“We take Columbia’s legal obligations seriously and understand how serious this announcement is and are committed to combating antisemitism and ensuring the safety and well-being of our students, faculty and staff,” she said.
Columbia is one of the most prestigious universities in the US and has about 30,000 students. Its famous Morningside Heights campus is on the west side of Manhattan.
Last year, the Ivy League university saw some of the largest and most tense campus demonstrations in the US as students protested against Israel’s military operation in Gaza.
