The U.S. Department of Education cut $350 million in federal grants on Wednesday. The decision hits historically Black colleges and universities (HBCUs) first, while also affecting Hispanic-serving and tribal colleges. Education Secretary Linda McMahon said the programs used racial quotas that violated the Constitution. The cut removes all fiscal year 2025 discretionary funding for schools that primarily serve Black, Hispanic, Indigenous, and Asian American students. It also halts funding for minority science and engineering programs.
Black Colleges Take Direct Hit
HBCUs depend heavily on federal support to sustain operations. For generations, these schools have served as a pathway to opportunity for Black students. Losing this level of investment threatens student support services, faculty resources, and campus infrastructure.
“This is a devastating blow to Black colleges that have been a lifeline for generations of students,” said one higher education advocate.
McMahon Defends the Move
McMahon argued that colleges requiring racial thresholds for eligibility discriminate against other groups. She cited a Justice Department opinion from July that declared such funding unconstitutional.
“The Department will no longer award Minority-Serving Institution grants that discriminate by restricting eligibility to institutions that meet government-mandated racial quotas,” McMahon said.
The Department has not identified where the money will go. Officials only said the funds will support programs “that do not include discriminatory racial and ethnic quotas.”
Nationwide Impact on Minority-Serving Institutions
The decision affects more than 800 schools and roughly five million students. That group includes Alaska Native, Native Hawaiian, Asian American, and Hispanic-serving institutions.
Most schools qualify for minority-serving status based on enrollment demographics. HBCUs and tribal colleges, however, hold their status due to history and mission.
Critics Push Back
Democrats condemned the cuts. Rep. Bobby Scott of Virginia said the decision harms schools that help students of color achieve financial stability.
“These institutions are effective engines of economic mobility because they meet students where they are and are dedicated to educating the whole person,” Scott said.
David Mendez, head of the Hispanic Association of Colleges and Universities, called the cuts “an attack on equity in higher education.” He noted that federal grants strengthen entire campuses and fund STEM programs that benefit all students.
Supreme Court Ruling Shapes Policy
The administration tied its reasoning to the Supreme Court’s 2023 decision against affirmative action in admissions. That ruling declared that race-based considerations violated equal protection.
U.S. Solicitor General D. John Sauer said “outright racial balancing” is unconstitutional and argued that federal policy cannot fund schools based on student racial makeup.
Next Steps for HBCUs
Legal challenges are expected. Advocates argue that without federal investment, HBCUs and other minority-serving schools will struggle to serve under-resourced and first-generation students.
For Black colleges in particular, the loss threatens programs that have advanced equity, access, and opportunity for decades.