The Trump administration is moving forward with one of its most controversial education policies to date, announcing that it will end hundreds of millions of dollars in federal grants for schools serving Latino and other minority students.
The U.S. Department of Education, led by Secretary Linda McMahon, stated that these programs “violate equal protection principles” because they provide “race-based benefits” to certain institutions. The department argues that public money cannot be used to favor schools based on racial or ethnic enrollment.
According to the official announcement, roughly $350 million in discretionary grant funding will be eliminated.
These grants have historically supported Hispanic-Serving Institutions (HSIs) and Minority-Serving Institutions (MSIs)across the country.
The money helped colleges expand academic support, improve campus infrastructure, and create programs to help first-generation and low-income students succeed. Schools that enrolled at least 25% Latino students often qualified as HSIs and relied heavily on this funding.
In California, about 171 colleges and universities are expected to lose significant financial support, including several within the University of California and California State University systems. Similar losses are expected in Texas, Florida, Arizona, and New Mexico, where HSIs make up a large share of the higher education system.
The Department of Education claims the funding model violates constitutional standards by awarding grants based on racial or ethnic makeup. In its statement, the agency said it was “ending racially discriminatory discretionary grant programs” and redirecting resources toward “race-neutral initiatives.”
Officials argue the government should not favor schools based on the background of their students but rather support “all Americans equally, based on need and merit.”
The decision followed legal challenges from groups that claimed these programs were unconstitutional. A case brought by Students for Fair Admissions and several state attorneys general alleged that minority-serving grants effectively excluded other institutions.
The cuts affect discretionary funding only, meaning some mandatory programs will continue. However, many of the programs being eliminated were key to student success, including tutoring, mentorship, and cultural engagement initiatives that focused on retention and graduation for underrepresented communities.
Among the most immediate changes, the Education Department has ordered schools in Florida to end “Latinos In Action,” a program designed to promote leadership and academic success for Latino students. The department said it violated the same constitutional standards by appearing to favor one ethnicity over others.
The announcement sparked strong reactions from educators and civil rights groups nationwide. The Hispanic Association of Colleges and Universities (HACU) released a statement condemning the move, calling it “a direct attack on equal opportunity.” Leaders say the grants have helped millions of students over several decades and that removing them will “turn back progress on diversity and inclusion in higher education.”
College administrators are already warning of program cuts and layoffs, especially at smaller regional universities and community colleges that depend on federal aid to serve students from historically marginalized backgrounds.
At the same time, the Education Department defended the move as an effort to promote fairness and compliance with the law. McMahon said the goal is to ensure “federal education funding serves all students without discrimination.”
