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The Department of Education is moving forward with freezing $350 million in federal grants for Minority-Serving Institutions.

These grants, which have historically supported colleges and universities enrolling large numbers of Hispanic, Black, Native American, and Asian American students, are being halted on the grounds that they violate constitutional protections by relying on racial and ethnic enrollment thresholds. Education Secretary Linda McMahon stated that the programs, while well-intentioned, amount to racial discrimination and fail to treat students as individuals. The department plans to redirect the funds to initiatives that support “underprepared or under-resourced” students without considering race, and it said it is committed to working with Congress to reimagine these programs in a way that complies with current legal interpretations.

MSIs qualify for grants by meeting specific demographic criteria (such as having at least 25% Hispanic enrollment to be considered a Hispanic-Serving Institution, or 40% Black enrollment for Predominantly Black Institutions). These schools often lack the financial resources of larger universities and rely on federal funding to provide critical services, including student advising, laboratory equipment, faculty development, and retention programs. While the Education Department has said it will continue distributing $132 million in mandatory funds (those required by law), it insists that the discretionary funds tied to race-based thresholds cannot be defended under the Constitution.

This all comes as those against the funding freezes argue that the administration is mischaracterizing the purpose of MSI programs. Critics, including Democratic lawmakers, education leaders, and civil rights advocates, say that these grants are not about racial preference but about addressing persistent disparities in access, funding, and academic support.