Trump administration halts $350 million in funding for minority students


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Summary

Announcement

The Trump administration has announced it will withhold $350 million in funding for programs supporting minority students.

Argument

The administration argues the programs are discriminatory and unconstitutional.

Response

Democrats criticized the decision, arguing it will harm funding for under-resourced colleges.


The Department of Education announced Wednesday it will halt $350 million in grants to hundreds of colleges that serve minority students, arguing the longtime programs are discriminatory. The department said it will stop funding eight grant programs that support Black, Native, Hispanic and Asian American college students nationwide and reallocate that money to new priorities.

However, about $132 million will still go to four of the grant programs because of congressional mandates. The Trump administration said only that money must be disbursed. 

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“Discrimination based upon race or ethnicity has no place in the United States,” Education Secretary Linda McMahon said in a statement. “The department looks forward to working with Congress to re-envision 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.”

Background

The move comes after the Department of Justice declined to defend the constitutionality of an initiative that assists colleges where at at least 25% of undergraduates are Hispanic.

The state of Tennessee and a conservative nonprofit group, Students for Fair Admissions, eventually prevailed in a lawsuit challenging the initiative. The plaintiffs sought an end to the program, arguing it was discriminatory by denying federal funding to colleges that didn’t meet the 25% requirement.

In July, United States Solicitor General D. John Sauer said the Trump administration would not defend the case, claiming the program violated “the equal-protection component of the Fifth Amendment’s Due Process Clause.”

“The Supreme Court has explained that outright racial discrimination balancing is patently unconstitutional,” he said, referring to a 2023 decision that prohibits race-based admissions. “Its precedents make clear that the government lacks any legitimate interest in differentiating among universities based on whether a specified number of seats in each class are occupied by individuals from the preferred ethnic groups.”

In its announcement on Wednesday, the Education Department endorsed the solicitor general’s argument and said all minority-focused college programs are unconstitutional. 

Democrats criticize move

Critics of the decision argue that the department has no power to decide the constitutionality of such programs. 

Amanda Fuchs Miller, who worked as deputy assistant secretary for higher education programs under former President Joe Biden, told The Washington Post that the Trump administration’s effort to halt grants is “contrary to statute and harmful to under-resourced schools who rely on this money to support all of their students.”

“Schools who are in the middle of their grant periods are being given less than a month to plan as their grants aren’t being continued,” she said.  “And, just earlier this month [the Education Department] ran competitions for many of these programs, wasting time and resources for those who applied.”

Democratic lawmakers have expressed concern this would happen since Congress passed a government funding bill earlier this year. They said the bill lacked specifics on key educational initiatives, which gave the Trump administration more leverage to decide which programs are funded.

“Ripping away these resources at the tail end of the fiscal year is yet another example of how President Trump is putting politics ahead of students,” Sen. Patty Murray, D-Wash., said in a statement.

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Why this story matters

The Department of Education's decision to halt grants for colleges serving large numbers of minority students raises legal, educational and policy questions about how public funds are allocated and the future of diversity initiatives on campuses.

Constitutionality of race-based funding

The Education Department states that grant programs tied to racial or ethnic thresholds may be unconstitutional, reflecting broader national debates about the legality of race-conscious policies in higher education funding.

Impact on minority-serving institutions

Colleges and universities that serve high numbers of minority or under-resourced students are affected by the suspension of funding, which could influence services, student outcomes and campus programs aimed at reducing educational disparities.

Political and legal conversation

The decision has prompted disagreement in Congress and among education advocates, with critics arguing that the administration is overstepping its authority and risking support for disadvantaged groups, as noted in statements by Democratic lawmakers and policy experts.

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Behind the numbers

The Education Department is withholding $350 million in grants, with more than $250 million targeted for Hispanic-Serving Institution programs, affecting over 500 colleges and universities. About $132 million will still be allocated through mandatory funding mechanisms.

Community reaction

Education advocates and leaders of minority-serving institutions have voiced concern about the loss of resources and the impact on under-resourced and first-generation students, with some describing the announcement as “devastating” and warning of effects on educational equity.

Context corner

Minority-serving institution grants have long been used to address educational disparities faced by Latino, Black, Native American and Asian American students. Congress established programs like the Hispanic-Serving Institutions program in 1998 to support colleges with significant minority student populations.

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Don't just take our word for it.


Center-rated reporting

According to media bias experts at AllSides

AllSides Center-rated reporting May 2026

Transparent and credible

Awarded a perfect reliability rating from NewsGuard

100/100

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Media landscape

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Key points from the Left

  • The Trump administration is ending several federal grant programs for colleges with high minority enrollment, claiming they promote illegal discrimination due to racial quotas.
  • The Education Department declared that using racial or ethnic enrollment levels for grant eligibility is now unconstitutional, marking a significant policy shift.
  • Sen. Patty Murray, D-Wash., criticized the cuts, stating they prioritize politics over student needs and emphasized that Congress should control federal funding decisions rather than leaving it to the administration.

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Key points from the Center

  • The United States Department of Education announced on Wednesday it will end $350 million of grants to minority-serving institutions, including Hispanic-Serving institutions.
  • This decision comes after a federal lawsuit was initiated in June by the state of Tennessee together with the organization Students for Fair Admissions, contesting the constitutionality of eligibility criteria based on race.
  • The Department, agreeing with the Justice Department's position, stated that the grant programs tie funding to racial quotas, which it deems discriminatory and unconstitutional under the Fifth Amendment.

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Key points from the Right

  • The Trump administration is ending several grant programs for minority-serving colleges, declaring them unconstitutional due to illegal discrimination based on racial quotas.
  • The Education Department stated that awarding federal grants based on racial or ethnic enrollment levels is now considered unconstitutional.
  • The agency is withholding $350 million in grants and wants Congress to reimagine the programs for future years.

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