In a sweeping shift that uproots decades of bipartisan higher‑education policy, the Trump administration today announced it will end $350 million in federal discretionary grants aimed at minority‑serving institutions. By declaring these programs unconstitutional, the administration is targeting the Hispanic‑Serving Institutions (HSI) grant program and several others that link eligibility to racial or ethnic student population thresholds.
The decision stems from a lawsuit filed in June by the State of Tennessee and Students for Fair Admissions (SFFA), the same group behind the landmark case overturning affirmative action in admissions in 2023. They contend HSIs and similar programs impose unconstitutional racial quotas on eligibility, violating the Fifth Amendment’s Equal Protection guarantee, according to the Associated Press.
In a July letter to House Speaker Mike Johnson, U.S. Solicitor General D. John Sauer confirmed that the Justice Department will not defend the HSI program. Sauer cited the Supreme Court’s 2023 which claims HSI’s designations “violate the equal-protection component of the Fifth Amendment’s Due Process Clause.”
Education Secretary Linda McMahon echoed the DOJ’s stance, stating that “discrimination based upon race or ethnicity has no place in the United States.” In an official statement issued Wednesday, she announced the Department will reprogram discretionary funds away from the targeted programs and will work with Congress to support under-resourced institutions without using race-based criteria
Programs affected and financial stakes
The HSI grant program, established by Congress in 1998, channels funds to institutions where at least 25 percent of undergraduates are Hispanic. It accounts for more than $250 million of the $350 million being cut. The remainder includes other programs targeting schools where at least 40 percent of students are Black, and those serving high percentages of Asian American, Native American, Pacific Islander, Alaska Native, or Native Hawaiian students.
These grants have supported more than 5000 institutions nationwide, including more than 600 HSIs overall. In California alone, at least 171 campuses — spanning University of California, California State University, and community college systems — stand to lose substantial federal support, data from InsideHigherEd showed.
Supporters warn of immediate harm to institutions serving high proportions of minority, low-income, and first-generation students. David Mendez, interim CEO of the Hispanic Association of Colleges and Universities (HACU), called the administration’s move “troubling” and “unjust” in a press release issued Wednesday), emphasizing that the program helps level uneven playing fields.
The impact is also deeply personal for staff and students in Delta’s EPIC Learning Community, which supports Asian American and Pacific Islander students through AANAPISI funding. “We are not a monolith,” said Susan Vang, director of the Empowering Positive Initiatives for Change Center (EPICenter). “It’s so important that we break down the stereotypes about AAPI students and recognize their diverse experiences and struggles. That’s why the additional support is so necessary.”
Vang said EPIC uses federal funds to provide culturally responsive counseling, tutoring, college visits, and events such as Lunar New Year celebrations and wellness circles.
“Some students may not feel like they belong in college at first, but that changes—even within their first semester—when they find community,” she said. “It just goes to show that if you create the right environment, students will thrive.”
Legal and policy uncertainties
Even though the administration has begun halting funding for new and non-competing continuation awards, it cannot unilaterally abolish the HSI program. Congressional legislation — specifically, the Higher Education Act — codifies the program. Termination would require legislative action or a final court ruling. Meanwhile, HACU has filed a motion to intervene in Tennessee v. United States Education Department to defend the program. Judge Katherine A. Crytzer has not yet ruled on that motion.
At San Joaquin Delta College, where more than 51 percent of the student body identifies as Latinx and nearly 20 percent as Asian American, Filipino, or Pacific Islander, administrators say they are watching the situation closely and are concerned about the potential long-term fallout.
“We anticipate multiple challenges to the legality of the Department of Education’s announcement,” said Alex Breitler, Director of Marketing and Communications. “The impact of this action remains unclear, but we want to assure students and employees alike that we are fully in support of the programs and services that could be impacted by a loss of grant funding.”
Breitler noted that the potential loss of Title V and other HSI- or AANAPISI-related funds could affect key programs such as tutoring, advising, transfer services, and culturally responsive learning communities. These include initiatives like EPIC and APIAE, which offer linked courses, leadership development, and mental health support.
“More than 70 percent of Delta’s students are considered lower-income and many are the first in their families to attend college,” he said. “Eliminating or reducing funds would lead to long-term losses for our underrepresented students and our community.”
While no formal contingency plan has been released, Breitler confirmed that campus leaders are “examining potential strategies” to preserve student support systems and “will examine all potential paths forward to maintain these important programs and services.”
Broader implications: Equity in crisis?
Since taking office, President Trump has pushed a broader rollback of diversity, equity, and inclusion (DEI) measures across the federal government. Increased scrutiny on DEI and race-conscious policy reflects a governmental shift toward race-neutral approaches, but critics argue that without such support, inequities will widen.
Research conducted by New America, a nonpartisan public policy think tank, warned the move may deepen disparities in access, retention, and completion rates for Latino and other underrepresented students, many of whom rely on HSI funding for academic support, infrastructure upgrades, and institutional capacity-building.
What’s next
Litigation: Courts must decide whether programs like HSIs are constitutional. The Justice Department’s refusal to defend them gives plaintiffs a legal advantage, but outcomes remain uncertain.
Congress: Lawmakers may choose to defend the program via statutory codification, override the administration’s changes, or propose new frameworks to support under-resourced institutions without racial thresholds.
Institutions: Thousands of colleges face budgetary gaps. Community colleges, like Delta, could see cuts to federal funding that support student services, remedial programs, and infrastructure.
