University president Beong-Soo Kim has "respectfully declined" the offer.
Even though the compact would be voluntary, tying research benefits to it would, over time, undermine the same values of free inquiry and academic excellence that the Compact seeks to promote.
USC has joined at least three other schools, including the University of Pennsylvania, the Massachusetts Institute of Technology, and Brown University, in rejecting the offer.
The federal Department of Education could not comment due to the government shutdown.
The decision may not help USC's finances, as the school faces a $200 million budget gap.
Author's summary: USC rejects Trump compact due to concerns over academic freedom.