• Education Secretary Linda McMahon has eliminated $350 million in federal grants to HBCUs and other minority-serving colleges.
• She argues the programs are discriminatory, while critics say the move undermines decades of progress in higher education.
• The decision reflects broader debates over diversity, equity, and the role of government in higher education funding.

WASHINGTON, D.C. (TDR) — The Department of Education announced this week that it will discontinue $350 million in federal grant programs supporting historically Black colleges and universities (HBCUs) and other minority-serving institutions. Education Secretary Linda McMahon said the grants, which have existed for decades, are “inherently racist” and pledged to redesign them with a new focus.

According to a statement cited by the New York Times, McMahon explained that “stereotyping an individual based on immutable characteristics diminishes the full picture of that person’s life and contributions, including their character, resiliency, and merit.” She said the department would “re-envision” the programs to continue supporting “underprepared or under-resourced students,” without specifying which groups would benefit.

Scope of the Cuts

The $350 million reduction represents the total of seven programs that historically bolstered minority enrollment in science and engineering, strengthened predominantly Black institutions, supported Asian American- and Native American-serving colleges, and assisted Hispanic-serving institutions. Hundreds of two- and four-year colleges nationwide qualify for these designations, including tribal colleges and Alaska Native and Native Hawaiian-serving institutions.

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The decision comes against the backdrop of a legal environment where federal support for race- or ethnicity-based programs is under heightened scrutiny. Earlier this year, Solicitor General D. John Sauer confirmed that the Justice Department would not defend a lawsuit from Tennessee and Students for Fair Admissions challenging the constitutionality of such programs. That group previously prevailed in its challenge to affirmative action before the U.S. Supreme Court.

Congressional Reaction

Democrats quickly criticized the funding cuts. Sen. Patty Murray (D-Wash.), the top Democrat on the Senate Appropriations Committee, said in a statement that Congress had repeatedly authorized these programs and appropriated funds for them. She argued that the administration’s decision effectively sidesteps Congress’s power of the purse.

“These are longstanding programs that Congress has authorized and provided funding for on an annual basis that the Trump administration is unilaterally deciding to eliminate,” Murray said. She added that the move “puts politics ahead of students simply looking to get ahead” and “sows chaos in our nation’s schools.”

The Broader Policy Trend

McMahon’s decision follows a series of actions by the Department of Education signaling a tougher stance toward diversity, equity, and inclusion (DEI) initiatives. In March, the department warned universities that they could risk losing federal funding for engaging in what it termed “illegal DEI.” During a congressional hearing, McMahon faced criticism after acknowledging she was unfamiliar with the Tulsa Race Massacre, raising questions about her grasp of historical context.

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In May, the Education and Justice Departments announced a Civil Rights Fraud Initiative to investigate schools suspected of misusing federal resources on DEI programs. Supporters described the effort as a safeguard against misuse of taxpayer money; opponents argued it was a mechanism to discourage institutions from pursuing diversity-related work.

Impact on Higher Education

The shift in funding priorities has already had ripple effects. Several universities have discontinued affinity graduations, reduced or closed DEI offices, and seen senior leaders step down under pressure. Although a federal judge recently blocked parts of the department’s anti-DEI guidance, observers say the administration continues to seek ways to reshape how colleges operate.

Looking Ahead

For critics, the cancellation of $350 million in grants undermines institutions that have historically played a key role in expanding opportunities for underrepresented communities. For supporters, the move signals a shift toward programs that emphasize income or need rather than race or ethnicity.

The debate highlights the tension between Congress and the executive branch over control of education funding, as well as the larger national conversation about equity in higher education. Whether the decision stands or is challenged through legislation or in court, its impact will likely be felt across campuses nationwide.

Does this funding cut represent a policy correction, or is it the start of a broader retreat from diversity-focused higher education programs?

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