The former Governor of California has now set up a partnership with the university to establish a think tank that will seek solutions to the US' environmental problems, economic policy, political reforms and other public policy issues, reported Los Angeles Times.
Schwarzenegger will chair the institute's Board of Advisors and will take a role as the Downey Professor of State and Global Policy at USC.
All solutions will involve lifting a lot of weights, jumping out of the way explosions and getting hastily into helicopters.
"When you think back of everything I've done - body building, training people, writing about diet and food supplements and promoting movies and entertainment - I've always been interested in making sure other people can benefit from my experience," Schwarzenegger said.
"And it's the same with this. It would be a shame to think what I learned from my governorship over seven years - ways of solving problems - will now be left behind and no one will benefit," he added.
Schwarzenegger will be giving his first lecture in early December, with his institute's first public event occurring on September 24.