The Department of Defense canceled fellowship programs at 13 U.S. colleges, a direct and immediate blow to academic‑military pipelines. The move reflects growing tensions between the Pentagon and universities over governance, data access, and use restrictions after recent disputes with AI vendors. For university leaders, the cancellations mean lost revenue, fewer graduate research placements, and potential reputational fallout. The decision may prompt institutions to reassess vetting of defense partners, tighten compliance offices, and reopen conversations with trustees about the risks and benefits of close security relationships.