Trump Admin Ends $350M in Grants to Minority-Serving Institutions

The Department of Education said funds will instead be funneled to programs that “advance administration priorities.”
Matthew Arrojas
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Published on September 16, 2025
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Featured ImageCredit: J. David Ake / Getty Images News / Getty Images

  • The Department of Education will not award $350 million in discretionary grants to minority-serving institutions.
  • It called those grant programs “unconstitutional,” despite being authorized by Congress.
  • ED will still award $132 million in mandatory funds.

The Department of Education (ED) will pull the plug on approximately $350 million in discretionary funds for institutions that enroll a high percentage of minority students.

ED announced Sep. 10 that seven grant programs serving historically Black colleges and universities (HBCUs), Hispanic-serving institutions (HSIs), and tribal colleges and universities (TCUs) will soon lose their discretionary funding. The department will disburse $132 million in mandatory funds for some grant programs benefiting minority-serving institutions (MSIs), but many institutions are expected to lose funding.

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Typically, these grants are only eligible for institutions that meet a student body enrollment threshold for different student demographic groups, such as Hispanic students.

“Discrimination based upon race or ethnicity has no place in the United States,” ED Secretary Linda McMahon said. “To further our commitment to ending discrimination in all forms across federally supported programs, [ED] will no longer award [MSI] grants that discriminate by restricting eligibility to institutions that meet government-mandated racial quotas.”

Pulling discretionary funding will impact both new awards and the continuation of existing awards.

President Donald Trump’s administration said it would redirect funds to grant programs that don’t include racial and ethnic quotas and that “advance administration priorities.”

The programs losing discretionary funds include:

Grant ProgramFiscal Year 2024 Appropriations
Strengthening Alaska Native and Native Hawaiian-Serving Institutions$24.6 million
Strengthening Predominantly Black Institutions$14.1 million
Strengthening Asian American- and Native American Pacific Islander-Serving Institutions$21 million*
Strengthening Native American-Serving Nontribal InstitutionsN/A
Minority Science and Engineering Improvement$16.4 million
Developing Hispanic-Serving Institutions$228.9 million
Promoting Postbaccalaureate Opportunities for Hispanic Americans$27.5 million
*Figure is for fiscal year 2023

HSIs are likely to be hit hardest by these cuts.

This should come as no surprise. In July, Solicitor General D. John Sauer wrote to U.S. Rep. Mike Johnson, Republican speaker of the House, that the provisions outlining HSIs were unconstitutional. As such, the federal government would not defend the constitutionality of these grants in an ongoing lawsuit brought by Tennessee against ED.

ED’s announcement came during National HSI Week, which runs from Sept. 8-14.

The Trump administration said mandatory funds would still go toward the following programs:

  • 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
  • Developing HSI Science, Technology, Engineering, or Mathematics and Articulation Programs

“The department continues to consider the underlying legal issues associated with the mandatory funding mechanism in these programs,” ED added in its statement.

ED later announced a one-time investment in HBCUs and TCUs on Sept. 15. Combined, HBCUs and TCUs are slated to receive an additional $495 million on top of planned 2025 spending.

Notably, the Sept. 15 announcement did not outline additional investment in HSIs.

Association of Public and Land-grant Universities (APLU) President Waded Cruzado called the department’s decision “concerning.”

“This action will negatively impact millions of students who have made these colleges and universities their destination of choice,” Cruzado said in a statement. “These educational institutions play a critical role in building a stronger America by preparing the next generation of leaders – educating students, conducting impactful research, and serving their communities and the nation.”