In a move that has rattled institutions, students, and advocates, the U.S. Department of Education under the Trump administration has announced it will eliminate approximately $350 million in discretionary grant funding for dozens of minority-serving institutions (MSIs) nationwide. The cuts affect seven major grant programs that support Hispanic-Serving Institutions, Predominantly Black Institutions, Alaska Native and Native Hawaiian-Serving Institutions, and Asian American, Native American, and Pacific Islander-Serving Institutions.
The administration’s stated rationale is that these programs violate constitutional equal protection principles by limiting eligibility based on race and ethnicity. A Solicitor General determination in July argued that some of these programs run afoul of the Fifth Amendment’s Equal Protection Clause. As a result, the Department of Education says it must terminate these discretionary funds and “reprogram” them into initiatives without race or ethnicity as eligibility criteria.
These grants have been essential for many MSIs: they have financed academic support services, facility improvements, staffing, mentoring and advising programs, and Science, Technology, Engineering, and Mathematics pathways aimed at underrepresented students. They have also helped institutions meet accreditation requirements and federal compliance demands. In the California State University system, for instance, 21 of its 22 campuses qualify as Hispanic-Serving Institutions. CSU Chancellor Mildred García has warned that the loss of funding will cause “immediate impact and irreparable harm” across the system, with many of those campuses having Hispanic students constituting nearly half of their enrollment.
Legally, the Department of Justice has declined to defend several of these MSI programs in litigation filed by Tennessee and Students for Fair Admissions. The core legal claim is that race- or ethnicity-based eligibility constitutes an unconstitutional preference not sufficiently justified under strict scrutiny. The administration has portrayed its actions not only as legal necessities but as aligning with broader priorities that avoid what it sees as constitutionally weak race-based criteria.
The consequences are likely to be broad. Without this discretionary funding, many MSIs will struggle to maintain programs focused on student persistence, remedial education, and equity‐oriented innovation. Services and supports for students who already face systemic barriers risk being cut. For students, this could translate into higher dropout rates, longer time to degree, and fewer resources. More broadly, institutions serve as engines of social mobility; removing a key source of institutional support may disproportionately harm communities of color and rural or underserved areas.
These changes arrive amid growing concerns about campus safety and the psychological toll inflicted by fear and disruption. In recent days several Historically Black Colleges and Universities (HBCUs) have been forced into lockdown or canceled classes following hoax threat calls—“swatting” incidents—that mimic real violence but are ultimately false. Schools including Virginia State University, Hampton University, Alabama State University, Bethune-Cookman University, Spelman College, Morehouse, Clark Atlanta, Southern University & A&M College, and others faced terroristic threat letters or hoax calls that led to shelter-in-place orders, lockdowns, and heightened security measures. Though the FBI confirms that as of now no credible threat has been identified in many cases, the disruption has been real and traumatic for students, faculty, and administrators. These events underscore how fragile promises of safety can be, especially in institutions that already contend with systemic underfunding and inequity.
Administrations of affected universities have responded with caution. Some campuses suspended operations entirely, others canceled classes for multiple days, and many restricted access and tightened identification requirements. There are also broader legal and psychological costs: the stress, fear, and interruption to learning can exacerbate existing inequities in mental health and academic performance.
Even congressionally mandated funding—approximately $132 million that cannot immediately be reprogrammed—is under review for constitutionality. If more funding is cut or reallocated, more programs that target underrepresented populations by race or ethnicity may be dismantled.
Reaction from campus leaders, student advocates, and civil rights organizations has been swift. Many insist that these MSI programs are essential for closing equity gaps and forging institutional capacity that benefits all students. They argue that the cuts and these swatting-style threats combine to send a message: that institutions serving marginalized communities are especially vulnerable, legally and physically. The administration holds that it is compelled by constitutional law to end programs it deems indefensible, and that reprogramming funds to race-neutral programs is the correct path forward.
Looking ahead, legal challenges are almost certain. Questions include: what justifications are required under constitutional scrutiny; whether socioeconomic, geographic, or first-generation status metrics can be substituted for race or ethnicity eligibility; how institutions will respond financially and operationally; and what role Congress might play in defending or restructuring funding mandates. Meanwhile, ensuring physical and psychological safety on campuses—especially HBCUs—will remain a pressing concern in a climate where hoaxes and threats have become disturbingly frequent.
The elimination of $350 million in discretionary grants to minority-serving institutions marks a major shift in federal higher education policy. For MSIs, their students, and the communities they serve, the immediate effects may be devastating. But the broader questions raised—about constitutional limits, equity, race as public policy, and the safety of marginalized communities—are likely to echo well beyond this administration.
Sources
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Diverse: Issues in Higher Education, “Trump Administration Cuts $350 Million in Grants to Minority-Serving Colleges,” September 2025.
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AP News, “Historically Black Colleges Issue Lockdown Orders, Cancel Classes After Receiving Threats,” September 2025. apnews.com
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Washington Post, “Multiple Historically Black Colleges Launch Lockdowns After ‘Terroristic’ Threat,” September 2025. washingtonpost.com
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Axios, “’Terroristic threats’ disrupt life at HBCUs across the U.S.” axios.com
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People Magazine, “Threats Force Multiple HBCUs Across Southern U.S. to Lock Down, Cancel Classes.” people.com
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The Guardian, “Black students and colleges across US targeted with racist threats day after Charlie Kirk killing.” theguardian.com
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