College leaders say federal policy unpredictability is undermining long‑range planning, while legal settlements drained hundreds of millions from campuses in 2025. An American Council on Education pulse survey found 98% of senior higher‑education leaders report federal policymaking has injected significant uncertainty into institutional planning—top concerns include research funding, immigration, student aid, and academic freedom. United Educators’ analysis shows multimillion‑dollar settlements across universities for sexual‑abuse, antitrust, pandemic‑era tuition claims, and campus violence, with Columbia and partner hospitals recording a $750 million payout. The combination of regulatory risk and litigation costs is forcing institutions to reroute reserves, tighten capital plans, and reexamine compliance investments.