Students Rallied on Gould Plaza Against Federal Bill

Protesters gathered at NYU to oppose legislation linking federal funding to academic freedom in Israel.

Updated on Sept. 21, 2026 in Financial Aid

Bold flat-color editorial illustration of an imposing brick university facade, evoking institutional tension and academic policy debate. — Students at New York University gathered on Gould Plaza on Wednesday to protest federal legislation that would link academic funding to freedom of speech regarding Israel. AI Illustration. Upload story photo >

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Should federal aid be withheld from universities that boycott or restrict academic programs in Israel?

Students at New York University rallied on Gould Plaza on September 18, 2026, to protest the Protect Economic and Academic Freedom Act of 2026. The bill, which passed the House earlier this month, would require colleges to certify academic freedom for programs in Israel to remain eligible for federal aid.

Why it matters

Protesters argue the legislation pressures universities to maintain ties with Israel and avoid divestment. They are specifically calling for NYU to sever institutional connections with Israeli companies and shutter its study-away site in Tel Aviv.

NYU received $732 million for research and $700 million for financial aid from the government in the year prior to the last. The university also reported a $71 million deficit during the most recent academic year.

The players

Josh Gottheimer

He is a U.S. Representative who co-sponsored the Protect Economic and Academic Freedom Act of 2026.

Virginia Foxx

She is a U.S. Representative who serves as a co-sponsor of the federal bill.

Donald Trump

He is the current President of the United States who would need to sign the bill for it to become law.

The details

Participants at the demonstration distributed flyers and delivered speeches to voice their opposition to the bill co-sponsored by Rep. Josh Gottheimer and Rep. Virginia Foxx. The rally took place at Gould Plaza, a location previously barricaded by the university for over two years following a large-scale pro-Palestinian encampment in April 2024.

April 2024: Over 130 protesters were arrested at a pro-Palestinian encampment at Gould Plaza.
September 2026: The U.S. House of Representatives passed the Protect Economic and Academic Freedom Act.
September 18, 2026: Students held a rally on Gould Plaza to protest the new legislation.

Judaism
Sept. 18
Students Protested Antisemitism at Gracie Mansion
Terrorism
Sept. 24
Police Took 100 Protesters Into Custody Near UN
Philanthropy
Sept. 22
Columbia Student Group Will Host Fundraiser in October

Culture Shift

The protest reflects a growing trend of student-led mobilization against institutional investments and partnerships linked to Israel. This movement aligns with the broader societal push for universities to divest from foreign entities under the oversight of the Protect Economic and Academic Freedom Act of 2026.

Residents and students may see increased activity or renewed security measures near the Stern School of Business and Gould Plaza. The potential loss of federal funding could significantly impact NYU's ability to provide financial aid or conduct research in the coming years.

The takeaway

Students are increasingly using public demonstrations to influence university policy regarding foreign partnerships and divestment. Understanding the implications of federal legislation on university budgets is essential for those monitoring the intersection of campus activism and government funding.