Education Department Halts Funding for Minority-Serving Institution Grant Programs, Citing Constitutional Concerns

United States Department of Education

WASHINGTON, D.C. — The U.S. Department of Education issued sweeping policy changes last week, releasing new federal data showing steep declines in student achievement while also announcing the end of discretionary funding for race-based grant programs at Minority-Serving Institutions.

On Sept. 9, Education Secretary Linda McMahon addressed the release of the 2024 National Assessment of Educational Progress results, often referred to as the Nation’s Report Card. The data showed that nearly half of American high school seniors tested below basic benchmarks in math and reading, underscoring what she described as a historic low in performance across all K-12 levels.

“Despite spending billions annually on numerous K-12 programs, the achievement gap is widening,” McMahon said in a statement. She argued that meaningful reform depends on returning decision-making power to the states, rather than increasing federal spending.

The following day, the department announced it would cut discretionary funding to seven Minority-Serving Institution grant programs, citing a July opinion from the U.S. Solicitor General that found the Hispanic-Serving Institutions program unconstitutional. The decision reflects a broader view within the administration that such programs impose unlawful racial and ethnic quotas.

“Discrimination based upon race or ethnicity has no place in the United States,” McMahon said. She added that the department plans to work with Congress to redesign programs to aid under-resourced students without using racial criteria.

The affected grant programs include initiatives for Predominantly Black Institutions, Hispanic-Serving Institutions, and schools serving Alaska Native, Native Hawaiian, Asian American, Native American, and Pacific Islander populations. In total, about $350 million in discretionary funds expected for fiscal year 2025 will be redirected.

Mandatory funding streams, totaling roughly $132 million, will remain in place because they are protected under statute.

The actions come as the Trump administration presses forward with education reforms centered on local control, merit, and transparency. McMahon emphasized that the latest policy shifts are intended to address systemic challenges in both student achievement and the distribution of federal resources.

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