Trump Administration Cancels $350 Million in Funds for Educational Institutions Serving Minority Populations
The United States Department of Education (ED) has announced a significant shift in funding distribution, affecting historically Black colleges and universities (HBCUs), tribal colleges and universities (TCUs), and Hispanic-serving institutions (HSIs).
On September 15, 2025, the ED announced a one-time investment of an additional $495 million for HBCUs and TCUs, representing increases of about 48.4% for HBCUs and 109.3% for TCUs. However, this investment does not include additional funds for HSIs. Instead, approximately $350 million in grants, which were previously directed to HSIs and other minority-serving institutions (MSIs), will be reallocated.
The ED's decision to pull discretionary funding will affect both new awards and the continuation of existing awards for the programs losing funding. This move is part of the Trump administration's plan to redirect funds to grant programs that do not include racial and ethnic quotas and that align with the administration's priorities.
ED Secretary Linda McMahon stated that discrimination based on race or ethnicity has no place in the United States. Solicitor General D. John Sauer, on the other hand, wrote to U.S. Rep. Mike Johnson in July that the provisions outlining HSIs were unconstitutional.
The ED's announcement came during National HSI Week (Sept. 8-14), causing concern among MSIs. APLU President Waded Cruzado expressed his worry, stating that the department's decision would negatively impact millions of students.
It is important to note that the programs losing discretionary funds have not been specified in the article. The ED, however, has clarified that they are still considering the underlying legal issues associated with the mandatory funding mechanism in these programs.
The ED will still distribute $132 million in mandatory funds for some MSIs grant programs. Despite this, the decision to withdraw discretionary funds from MSIs is expected to significantly affect HSIs, potentially leading to a lack of new investments for these institutions.
The ED has also confirmed that they will no longer award MSIs grants that restrict eligibility based on government-mandated racial quotas. The programs that will lose their discretionary funding have not been specified, but the ED's announcement on September 10 stated that seven grant programs for HBCUs, HSIs, and TCUs will no longer receive discretionary funding.
The Trump administration's decision to reallocate funds from HSIs to HBCUs and TCUs has sparked controversy, with many expressing concern over the potential impact on HSIs and their students. The ED's decision is currently under scrutiny, with legal issues and the impact on millions of students yet to be fully understood.
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