The U.S. Education Department (ED) on Wednesday announced that it will end discretionary funding to several Minority-Serving Institutions (MSI) grant programs that provide substantial support to community colleges, including Hispanic-Serving Institutions, Predominantly Black Institutions (PBIs), and Asian American and Native American Pacific Island-Serving Institutions.
According to ED, these programs “violate the equal-protection component of the Fifth Amendment’s Due Process Clause.” The action follows the U.S. Department of Justice’s announcement in August that it would not defend the HSI program against ongoing litigation challenging its constitutionality. No court has ruled against the HSI program, nor have the other MSI programs been found to be unconstitutional.
Approximately $350 million was expected to be allocated to these programs in fiscal year (FY) 2025. According to ED, the funds will be “reprogrammed [a formal federal budgeting term] into programs that do not include discriminatory racial and ethnic quotas and that advance Administration priorities.”
In this context, it should be noted that the Trump administration has proposed eliminating the Strengthening Institutions program (Title III-A of the Higher Education Act), so reprogrammed funds are not likely to be channeled into that account (and, in fact, current year funds have yet to be spent for that program as well). Sources indicate that the funds will instead be diverted into Historically Black Colleges and Universities (HBCU) programs, as well as those supporting Tribally Controlled Institutions.
Adding to the turmoil
The department’s announcement comes at a time of continued uncertainty over federal funding for institutions. Federal agencies have already canceled or delayed the awarding of funds for a variety of programs across several agencies, many of them affecting community colleges. Various reasons have been cited, often nothing more concrete than the program no longer “effectuates the program’s goal or agency priorities.”
In addition, as the fiscal year winds down, there is growing anxiety that some programs will simply not receive funds that Congress has provided in FY25 legislation; and while the funding process is complex and subject to a variety of rules, Congress’s clear intent in passing FY25 legislation was to continue the funding of all relevant programs at the FY24 level. In many cases, this is not turning out to be so.
Congressional planning for next year
Adding to the mayhem of the current situation is the fact that, for all the programs whose funds are being “reprogrammed” because of their alleged unconstitutionality, the Appropriations committees in both the House and Senate have approved level or slightly increased funding for next fiscal year (FY26). In fact, the administration itself requested FY26 funding for the very same programs that it has now deemed to violate the Constitution.
Unfortunately, community college students and the campuses that serve them will ultimately suffer from these disruptions. It is hoped that concerted action in Congress and the courts can result in MSI program funding being sustained.
