The U.S. Department of Education announced it will end discretionary funding for several Minority-Serving Institutions (MSI) grant programs that base eligibility on racial or ethnic quotas. This decision follows a July determination by the U.S. Solicitor General, who found that Hispanic-Serving Institutions (HSI) programs violate the equal-protection component of the Fifth Amendment's Due Process Clause, and stated that the Department of Justice would not defend these programs in ongoing litigation.
The Department has agreed with this legal assessment and will use its statutory authority to redirect discretionary funds from all MSI programs with similar issues to those without such concerns.
“Discrimination based upon race or ethnicity has no place in the United States. To further our commitment to ending discrimination in all forms across federally supported programs, the Department will no longer award Minority-Serving Institution grants that discriminate by restricting eligibility to institutions that meet government-mandated racial quotas,” said U.S. Secretary of Education Linda McMahon. “Diversity is not merely the presence of a skin color. Stereotyping an individual based on immutable characteristics diminishes the full picture of that person’s life and contributions, including their character, resiliency, and merit. The Department looks forward to working with Congress to reenvision these programs to support institutions that serve underprepared or under-resourced students without relying on race quotas and will continue fighting to ensure that students are judged as individuals, not prejudged by their membership of a racial group.”
Affected grant programs include Strengthening Alaska Native and Native Hawaiian-Serving Institutions (Title III Part A), Strengthening Predominantly Black Institutions (Title III Part A), Strengthening Asian American- and Native American Pacific Islander-Serving Institutions (Title III Part A), Strengthening Native American-Serving Nontribal Institutions (Title III Part A), Minority Science and Engineering Improvement (Title III Part E), Developing Hispanic-Serving Institutions (Title V Part A), and Promoting Postbaccalaureate Opportunities for Hispanic Americans (Title V Part B). About $350 million in discretionary funds were expected for these programs in fiscal year 2025; these funds will now be redirected into other initiatives aligned with Administration priorities.
Under provisions of the Higher Education Act of 1965, eligibility for certain grant programs has been tied to maintaining specific percentages of minority student enrollment at institutions. For example, some grants require at least 50 percent minority student bodies or minimum thresholds such as 40 percent Black students or 25 percent Hispanic students depending on program type.
Grant recipients are being notified today that existing discretionary awards will not be continued, and applicants for new grants are being informed there will be no new awards for fiscal year 2025. The Department states it intends to work with Congress on redesigning these supports for underprepared or under-resourced students without using race-based criteria.
Although discretionary funding is being reprogrammed, approximately $132 million in mandatory funds appropriated by Congress—funds which cannot be reallocated due to statutory restrictions—will still be distributed among certain MSI-related initiatives. These include Strengthening Alaska Native- and Native Hawaiian-Serving Institutions (Title III Part F); Strengthening Predominantly Black Institutions (Title III Part F); Strengthening Asian American- and Native American Pacific Islander-Serving Institutions (Title III Part F); Strengthening Native American-Serving Nontribal Institutions (Title III Part F); and Developing HSI Science, Technology, Engineering, or Mathematics and Articulation Programs (Title III Part F).
The Department noted it continues to review legal questions related to mandatory funding mechanisms within these programs.
