A federal appeals court dismissed a lawsuit filed by faculty unions American Association of University Professors (AAUP) and AFT challenging the Trump administration’s suspension of roughly $400 million in federal grants and contracts to Columbia University. The court concluded the case was moot. The unions initially sued in March 2025 after the government suspended funds and demanded Columbia make sweeping policy changes. A federal judge dismissed the case earlier that year on standing grounds, and AAUP and AFT appealed. The dismissal followed Columbia’s later agreement with the Trump administration to restore the majority of suspended funding. Columbia agreed to pay $221 million and to provide extensive admissions data, along with other administration demands that included reviewing certain regional academic program areas, beginning with the Middle East. For faculty governance and higher ed labor stakeholders, the ruling narrows legal avenues for challenging federal funding conditions once universities reach settlements, while also highlighting the leverage federal agencies have over academic autonomy through grant terms.