📚 U.S. Department of Education ends funding for some minority-serving institution grant programs

U.S. Department of Education ends funding for some minority-serving institution grant programs

The U.S. Department of Education announced it will end discretionary funding for several minority-serving institution, or MSI, grant programs that use racial or ethnic enrollment requirements, following a U.S. solicitor general determination that such quotas violate the equal-protection principles of the Fifth Amendment’s Due Process Clause.

The announcement comes as the Department of Justice declined to defend these programs in court. The Education Department plans to reprogram about $350 million in fiscal year 2025 discretionary grant funds into programs without racial or ethnic restrictions.

Secretary of Education Linda McMahon said the department supports ending discrimination based on race or ethnicity and noted that diversity extends beyond race. She cautioned against making assumptions about individuals based on race or ethnicity and said the department is exploring ways to support underprepared or under-resourced students through programs based on individual needs rather than racial or ethnic quotas.

The affected discretionary grant programs include:

• Strengthening Alaska Native and Native Hawaiian-Serving Institutions
• Strengthening Predominantly Black Institutions
• Strengthening Asian American- and Native American Pacific Islander-Serving Institutions
• Strengthening Native American-Serving Nontribal Institutions
• Minority Science and Engineering Improvement
• Developing Hispanic-Serving Institutions
• Promoting Postbaccalaureate Opportunities for Hispanic Americans

These programs have required institutions to meet specific enrollment percentages by race or ethnicity to qualify for funding. Recent legal interpretations have deemed continuation of quotas unconstitutional, leading to suspension of new and continuing awards under these programs for fiscal year 2025.

Mandatory funding of approximately $132 million for some programs, as appropriated by Congress, remains in place because it cannot be reprogrammed by the department at this time. Legal reviews are ongoing regarding these funds.

This policy change shifts federal education funding eligibility away from criteria based on race or ethnicity. The department is working with Congress to develop future programs that support student populations based on individual needs and circumstances.

Opposition and concerns

The decision has drawn criticism from college leaders, advocacy groups, and lawmakers who argue that ending these grants will harm students and institutions that rely on this funding to support underrepresented communities. The Latino Policy Forum called the decision “a significant threat” to minority-serving institutions and said it undermines decades of progress toward educational equity, warning it could widen educational gaps. Similarly, the Student Senate for California Community Colleges expressed concern that the cuts would disrupt access and opportunity for hundreds of thousands of students at community colleges designated as MSIs.

Critics argue the funding supports vital programs that help close equity gaps, providing crucial resources for students from historically underserved backgrounds. Some higher education leaders and lawmakers say the department’s authority to end congressionally appropriated programs is unclear and that the timing of the decision, after funds were allocated by Congress, has caused uncertainty for institutions.

They emphasize that these grants have played an important role in diversifying campuses and opening pathways to degrees, leadership, and economic mobility for many students. Opponents caution that removing race- or ethnicity-based criteria could hinder tailored support for students who have faced systemic barriers in higher education.

👉🏿 Call to action

Stakeholders, including educators, students and policymakers, are encouraged to stay informed and engage in discussions about the future of support for minority-serving institutions. Contacting local and national representatives can help promote equitable education opportunities for all students.

Headline Living will continue to follow developments related to federal support for minority-serving institutions.

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Source: U.S. Department of Education press release, Sept. 15, 2025
Additional reporting from Higher Ed Dive , GovExec , Inside Higher Ed , Latino Policy Forum , and California Community Colleges Student Senate

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