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The students' list of demands includes resources for Palestinian students and divesting from Israel.
The school will offer 100 full four-year scholarships to its first students, leaders said.
'Dao Prize-winning journalism stands out for accuracy and courage,' according to sponsor Young America's Foundation.
Students had demanded UMass cut ties with weapons manufacturers arming Israel.
'False liberals who actively supported the progressivist degradation of our colleges and universities ought to be ashamed of themselves,' Daniel Mahoney wrote.
Both scholars have objected to affirmative action.
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