Anti-Israel agitators staged encampments on Columbia University's campus. (Getty Images)
The lawsuit comes after Columbia's administrators agreed to enact sweeping changes to its policies regarding student protests and conduct a review of its Middle Eastern studies department.
The Trump administration threatened to withhold some $400 million if changes were not made.
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Maria McIver, executive director of the American Association of University Professors (AAUP), spoke at an "emergency vigil" outside Columbia University's gates to protest recent policy changes on Monday. (FOX)
Tuesday's lawsuit, filed in the Southern District of New York, calls on the court to require the Trump administration to reinstate "all grants and contracts to Columbia University."
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It also urges the court to prohibit the Trump administration from making further funding cuts, as well as award damages to the plaintiffs.
Fox News' Louis Casiano contributed to this report.
Anders Hagstrom is a reporter with Fox News Digital covering national politics and major breaking news events. Send tips to Anders.Hagstrom@Fox.com, or on Twitter: @Hagstrom_Anders.
https://www.foxnews.com/politics/teachers-union-sues-trump-administration-over-400m-cuts-columbia-university