U.S. Department of Education Ends Discretionary Funding for Minority-serving Institutions (MSI) Grant Programs
The U.S. Department of Education (ED) has announced
plans to end discretionary grant funding for several programs supporting Minority-serving
Institutions (MSIs), citing concerns that the eligibility requirement—based
on racial or ethnic enrollment thresholds—violates constitutional protections.
The affected grants include funding for institutions serving large populations
of Hispanic, Black, Asian American, Native American, Alaska Native and Native
Hawaiian students, excluding those officially designated as Historically Black
Colleges and Universities (HBCUs) or tribal colleges. Programs like the Predominantly
Black Institutions (PBI) and Hispanic-serving Institutions (HSI) were specifically
highlighted for requiring racial enrollment minimums, such as 40% Black or 25%
Hispanic student enrollment, which ED now deems unconstitutional.
This policy shift follows a July determination by the U.S. Solicitor General that
found the HSI programs violated the Fifth Amendment’s Equal Protection component,
prompting ED to withdraw its defense in an ongoing lawsuit filed by Tennessee and Students for Fair Admissions.
As a result, $350 million in discretionary grant funding for fiscal year 2025 will
be redirected to programs that do not include what ED calls “discriminatory
racial and ethnic quotas,” though ED did not list the programs the money will be redirected to.
However, ED noted that it will continue to distribute $132 million in mandatory
funds that are legally protected from reprogramming.
ED Secretary Linda McMahon emphasized the Department’s stance against racial
discrimination in federally supported programs, arguing that diversity must be
recognized beyond surface-level racial identifiers.
McMahon stated that the Department
intends to collaborate with Congress to re-envision these programs.
The goal is
to develop new approaches that support underprepared or under-resourced students
without relying on racial quotas, focusing instead on individual merit, character and need.
ED also made it clear that it would continue to examine the “underlying legal
issues” with mandatory funding that is dedicated to these institutions.