The decision affects seven major grant programs supporting Hispanic-Serving Institutions, Predominantly Black Institutions, and colleges serving Alaska Native, Native Hawaiian, Asian American, and Native American Pacific Islander students. Education Secretary Linda McMahon said the programs violate constitutional equal protection principles by “restricting eligibility to institutions that meet government-mandated racial quotas.”
The California State University system, where 21 of its 22 campuses qualify as Hispanic-Serving Institutions, will be among those hit hardest by the funding cuts. CSU Chancellor Dr. Mildred García called the decision “deeply troubling” and warned it would cause “immediate impact and irreparable harm to our entire community.”
“Hispanic students account for nearly half of the CSU’s total student population,” said García “Without this funding, students will lose the critical support they need to succeed in the classroom, complete their degrees on time, and achieve social mobility for themselves and their families.”
The Department of Education cited a July determination by the U.S. Solicitor General that Hispanic-Serving Institution programs “violate the equal-protection component of the Fifth Amendment’s Due Process Clause.” The Department of Justice declined to defend these programs in ongoing litigation brought by Tennessee and the advocacy group Students for Fair Admissions.
McMahon said the administration will “reprogram” the eliminated funding into programs that “advance Administration priorities” without racial or ethnic eligibility requirements. She argued that “diversity is not merely the presence of a skin color” and that “stereotyping an individual based on immutable characteristics diminishes the full picture of that person’s life and contributions.”
The terminated programs include:
- Developing Hispanic-Serving Institutions
- Strengthening Predominantly Black Institutions
- Strengthening Alaska Native and Native Hawaiian-Serving Institutions
- Strengthening Asian American and Native American Pacific Islander-Serving Institutions
- Minority Science and Engineering Improvement Program
To qualify as a Hispanic-Serving Institution, colleges must maintain enrollment of at least 25% Hispanic students. Predominantly Black Institution status requires minimum 40% Black student enrollment.
The Department will continue distributing approximately $132 million in congressionally mandated funds that cannot be legally reprogrammed, but officials said they are reviewing the constitutionality of those programs as well.
Higher education leaders expressed shock at the announcement, noting the grants support institutions rather than individual students, meaning all enrolled students benefit regardless of race or ethnicity.
García said that federal HSI funding “is used by the CSU to support all CSU students, not just Hispanic students” and helps the university system carry out its mission of “inclusive excellence, social mobility, authentic access to higher education and equity.”
The decision is likely to face legal challenges questioning whether the Trump administration has authority to redirect congressionally appropriated funds from their intended purposes.
Grant recipients were notified Wednesday that existing awards will be terminated and no new grants will be awarded for fiscal year 2025.
