Tag: MSI

  • MSI Cuts Create Barriers for Indigenous Learners (opinion)

    MSI Cuts Create Barriers for Indigenous Learners (opinion)

    As we start the new year, my leadership team, like many others across the country, is confronting the financial fallout from the Department of Education’s decision to end grant programs for certain minority-serving institutions, including ours. The department has framed its September shift of funds away from MSIs and toward historically Black colleges and universities and tribal colleges and universities (TCUs) as an expansion of opportunity. Yet as an Indigenous education scholar and a college president, I see it creating new barriers for Indigenous learners. This decision is complex and requires deeper analysis to understand its lasting impacts.

    Federal support for Native education is a part of the federal trust responsibility, codified by at least 150 treaties, as well as various statutes and court decisions. Those treaties provide explicit provisions for various services, including education, that were guaranteed to Tribal Nations and their citizens by the United States government in exchange for land. This trust responsibility follows both Tribal Nations and individual tribal citizens. Ultimately, the federal trust responsibility is both a legal and moral obligation.

    In 2008, ​​Congress created Native American–serving nontribal institutions (NASNTIs), a new category of MSI, to ensure federal grant support for institutions educating Native students outside of tribal colleges and universities. Only about 12 percent of Native students attend TCUs. Stripping more than $54 million away from the other institutions that serve large numbers of Native students effectively undermines the federal government’s trust responsibility. Furthermore, this funding, which went not to just NASNTIs, but also but to Asian American and Native American Pacific Islander–serving institutions (AANAPISIs) and Alaska Native and Native Hawaiian–serving institutions (ANNHs)—typically supported programs open to all students at these institutions who qualified, not just Native learners.

    This loss is not abstract. At Fort Lewis College in Durango, Colo., where I am president, 37 percent of our students are Native American, representing more than 128 Tribal Nations and Alaska Native villages. We are the only NASNTI in the state. Recent federal cuts will mean a $2.27 million loss in critical grant support—dollars that have historically funded things like our peer educator tutoring, peer mentoring and summer bridge programs, all essential academic supports aimed at increasing student retention and graduation.

    In my role, I meet students every week who tell me that the support they received through these programs gave them the academic confidence to formally enroll or stay in school and a community to belong to on campus. For many students, these programs are the difference between continuing on the track toward graduation or leaving higher education altogether. Cutting this funding pulls away the very safety nets that level the playing field.

    Funding the institutions that support these students is also critical for boosting graduation rates, preparing a strong workforce and overall Tribal Nation building. Higher education access and success is a long-standing issue for Native communities, where only 42 percent of Native students graduate within six years, compared to 64 percent nationally, and only 17 percent of Native adults hold a bachelor’s degree. At a time when many communities are facing shortages of teachers, health-care providers and public servants, undermining critical pathways to higher education hurts our economy. Investing in these institutions is not only moral but profoundly practical.

    Finally, the decision to reallocate funding away from NASNTIs is especially damaging because it frames Native-serving institutions as competitors with TCUs, instead of partners in the shared mission of educating historically underserved students. There is no question that TCUs and HBCUs have both been woefully underfunded for decades. These institutions serve critical historical and present-day roles, providing access to higher education and meeting community and tribal needs. They deserve robust, sustained federal investment. TCUs, in particular, play an essential role in rural areas and tribal communities. That said, needed investments in these institutions should not come at the expense of the NASNTIs and other MSIs that educate vast numbers of Native students.

    By shifting this money, the Department of Education forces communities that are deeply aligned in our commitment to serving Native students and communities to fight for scarce resources, all while the department fails to meet its federal trust responsibility. NASNTIs and TCUs do not succeed at the expense of one another; we succeed together when federal policy recognizes the full breadth of our contributions.

    The Department of Education has an opportunity to reaffirm, not retreat from, its responsibility to Native students. That means sustaining investment in TCUs and HBCUs and restoring support for the NASNTIs that educate large numbers of Indigenous learners. When we fund the full ecosystem of Native-serving colleges and universities, we strengthen Native communities and the nation as a whole. True recognition of Native heritage lies in a commitment that honors the promises made and ensures that every Native student has the educational resources to thrive.

    Heather J. Shotton is president of Fort Lewis College.

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  • DOJ Report Compounds MSI Advocates’ Worries

    DOJ Report Compounds MSI Advocates’ Worries

    Minority-serving institutions sustained another blow after the U.S. Department of Justice released a December legal report declaring funding to many of these institutions as unconstitutional. That memo could reach further than the Education Department’s move to defund some of these programs, ramping up uncertainty for the institutions.

    Much like the Education Department in September, the DOJ argued these programs are unconstitutional because they require colleges to enroll a certain percentage of students from a particular racial or ethnic background to qualify, among other criteria. ED ultimately redirected hundreds of millions of dollars intended for Hispanic-serving institutions and other MSIs for fiscal year 2025; it remains unclear whether the DOJ memo will result in more of the same.

    But the 48-page document offers new insight into the dangers a wide range of MSI grant programs could be facing and how the administration is legally justifying its stance against the institutions.

    The Trump administration seems to be “doubling down” on its attacks on MSIs, offering some “legal justification for what they’ve already done, and in light of that justification, extending it to some additional programs that they did not pursue in the first go-around,” said John Moder, interim CEO of the Hispanic Association of Colleges and Universities.

    Mandatory Funds at Risk

    Similar to ED, the report by the DOJ’s Office of Legal Counsel uses an expansive interpretation of the 2023 U.S. Supreme Court decision in Students for Fair Admissions v. Harvard that barred considering race in admissions.

    But the DOJ went further and called into question not just discretionary dollars but also congressionally mandated funds to MSIs, said Amanda Fuchs Miller, former deputy assistant secretary for higher education programs in the Biden administration and now president of the higher ed consultancy Seventh Street Strategies. The Education Department left mandatory funds alone in September, acknowledging in a news release that those funds “cannot be reprogrammed on a statutory basis,” but it would continue “to consider the underlying legal issues associated with the mandatory funding mechanism in these programs.”

    The DOJ implied that “they don’t have to give out the mandatory money as required anymore—in their opinion,” Miller said. But as far as she’s concerned, “the executive branch has to enforce statutes,” including discretionary and mandatory funding authorized by Congress.

    “They don’t have the authority to declare a statute unconstitutional,” she added.

    In contrast, the legal memo argued that the president may be able to reject statutes altogether “even if only parts of them are noxious.” And it concluded that “the race-based portions” of various programs—including funds for Hispanic-serving institutions, Alaska Native and Native Hawaiian–serving institutions and Asian American and Native American Pacific Islander–serving institutions—are “inseverable,” meaning the unconstitutional parts, according to the DOJ, can’t be removed.

    The DOJ did, however, make some exceptions, including competitive grants to predominantly Black institutions (but not mandatory funds) and the Minority Science and Engineering Improvement Program; the department claimed these programs could be stripped of “race-based provisions.” The memo also scrutinized two TRIO programs, the Ronald E. McNair Postbaccalaureate Achievement Program and Student Support Services, but ultimately considered them constitutional, provided the grants aren’t used “to further racially discriminatory ends.”

    This approach raises questions, Miller said. For example, the Minority Science and Engineering Improvement Program was specifically designed to bolster engineering and science programs at MSIs, so what would it mean to continue the program without MSI status as a factor? She also stressed that Native Americans aren’t a racial category, according to federal law, which the administration has acknowledged in the past. But the DOJ memo seems to muddy the administration’s take on the issue, she said, by arguing that Alaska Native and Native Hawaiian–serving institutions and Native American–Serving nontribal institutions rely on “racial and ethnic classifications rather than political classifications.”

    Ultimately, “Congress needs to stand up and fight back for these schools that play key roles in their districts” and make sure its statutory authority is respected, Miller said.

    Some members of Congress have called out the DOJ and ED for stepping out of bounds. Rep. Bobby Scott, a Virginia Democrat and ranking member of the House education committee, called the DOJ memo “deeply at odds with the fundamental goal of the [Higher Education Act] to ensure all students, regardless of their background, can access an affordable, quality degree.” Sen. Alex Padilla, chair of the Senate Congressional Hispanic-Serving Institutions Caucus, said the DOJ opinion “ignores federal law.” But lawmakers have yet to share a game plan on if or how they plan to push back.

    Next Steps

    What happens next is unclear.

    Moder said the administration might withhold new funding for the flagged programs, rescind funds already given, or both.

    In that case, institutions could sue, he said, but that’s an expensive ordeal for colleges and universities that, by definition, are underresourced. To qualify for most of the programs targeted by the DOJ, institutions are required to have low per-student expenditures compared to similar institutions, meaning they have relatively few resources to spend on students. They also need to serve at least half low-income students, in addition to a certain percentage of students from a particular racial or ethnic background.

    “It’s an expensive proposition and a time-consuming proposition,” Moder said. Although MSIs could have already sued over their lost discretionary funds, “it’s not surprising that there hasn’t been a flurry of legal challenges presented to date.”

    HACU has been defending HSIs against a legal challenge from the state of Tennessee and the advocacy group Students for Fair Admissions, after ED declined to stand up for the institutions. The lawsuit argued that Tennessee institutions don’t meet the requirement for HSIs—enrolling 25 percent Hispanic students—and miss out on federal funds; therefore, the federal criteria are discriminatory based on race. HACU has since asked the court to dismiss the case, arguing it’s a moot issue now that ED took away the discretionary funds Tennessee protests.

    The hope is “it will leave the possibility of … Congress voting for renewed funding,” and eventually “a new administration to continue to administer it,” Moder said.

    Deborah Santiago, co-founder and CEO of Excelencia in Education, an organization focused on Latino student outcomes, believes the DOJ report could have a positive twist: It offers more insight into how the administration is thinking about MSIs—and more fodder to fight back, she said.

    The DOJ memo “went a little bit deeper on examples, and in doing so, created opportunities to understand where they’re coming from,” and to “challenge some of the basic framing and concepts that are in dispute,” said Santiago, who previously worked as deputy director of the White House Initiative on Educational Excellence for Hispanics.

    Notably, she said, the report didn’t take issue with the idea that “there is a clear federal policy goal in providing capacity-building for underresourced institutions.” Instead, it took aim at “racial quotas” and quibbled with whether “individual discrimination” against particular students or types of students occurred. But Santiago said it’s easy to argue back that MSI grants support underserved institutions, not individual students, and there’s a difference between racial quotas and enrollment thresholds.

    “MSIs are about institutional capacity-building and not about redressing individual student discrimination. I think that was a false framing that they put out there,” she said. “At the core, this is about persistent structural disadvantages of institutions and how the federal government can fund them.” And when the federal government has limited funds to invest, “you can make the case” that increasing academic quality at institutions with a persistent lack of resources and a disproportionate number of historically underrepresented students “is a clear federal role and responsibility.”

    She also pushed back on the idea that institutions that don’t get the money are discriminated against. By the same logic, “students who are not enrolled in military academies are being discriminated against because they’re not getting access” to investments in military academies, she said.

    She believes that the DOJ memo will help hone how MSIs and their supporters advocate for the institutions to members of Congress and others.

    “I think we need to reframe and make the case to our colleagues on the Hill,” she said.

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  • MSI funding, institutional priorities, and the coming test of “social mobility” (Glen McGhee)

    MSI funding, institutional priorities, and the coming test of “social mobility” (Glen McGhee)

    A recent opinion from the Department of Justice’s Office of Legal Counsel declares that federal Minority-Serving Institution (MSI) programs are unlawful because they allocate funding based on the racial composition of enrolled students. The ruling immediately throws hundreds of campuses—and the students they serve—into uncertainty. But beyond the legal debate lies a more revealing institutional reckoning: if MSI grants disappear, will colleges actually fund these programs themselves?

    The short answer, based on decades of evidence, is no.

    For years, colleges and universities have framed MSI grants as proof of their commitment to access, equity, and social mobility. Yet those commitments have always been conditional. They have depended on external federal subsidies rather than first-principles institutional priorities. Now that the funding stream is threatened, the gap between rhetoric and reality is about to widen dramatically.

    The scale of what is being cut is not trivial. Discretionary MSI programs—serving Hispanic-Serving Institutions (HSIs), Asian American and Native American Pacific Islander–Serving Institutions (AANAPISIs), Predominantly Black Institutions (PBIs), and others—have collectively provided hundreds of millions of dollars annually for tutoring, advising, counseling, faculty development, and basic academic infrastructure. These grants have often been the difference between persistence and attrition for low-income students, many of whom are first-generation and Pell-eligible.

    Yet MSI funding has also sustained something else: a sprawling administrative apparatus dedicated to grant writing, compliance, reporting, assessment, and “outcomes tracking.” Entire offices exist to chase, manage, and justify these funds. This is the professional-managerial class infrastructure that has come to dominate higher education—highly credentialed, compliance-oriented, and deeply invested in external funding streams.

    Follow the money, and a pattern becomes clear. When federal or state funding declines, colleges do not trim administrative overhead. They cut instruction. They cut tutoring. They cut advising. They cut student-facing programs that lack powerful internal constituencies. Administrative spending, by contrast, is remarkably durable. It rarely shrinks, even in moments of fiscal crisis.

    We have seen this movie before. When state appropriations fell over the past decade, public universities raised tuition and reduced instructional spending rather than dismantling administrative layers. When DEI offices were banned or defunded in several states, institutions eliminated student services and laid off staff, then quietly absorbed the savings into general operations. There was no surge in faculty hiring, no reinvestment in instruction, no serious attempt to replace lost support with institutional dollars.

    MSI grants will follow the same path. Colleges may offer short-term “bridge funding” to manage optics and morale, but that support will be temporary and partial. The language administrators use—“assessing impacts,” “exploring alternatives,” “seeking private donors”—is a familiar signal that programs are being triaged, not saved.

    Could institutions afford to self-fund these programs if they truly wanted to? In most cases, no—or at least not without making choices they refuse to make. Endowments are largely restricted and already used to paper over structural deficits. Tuition increases are politically and economically constrained at campuses serving low-income students. Federal aid flows through institutions but cannot be repurposed for operations. There is no hidden pool of fungible money waiting to be redirected.

    What would replacing MSI funding actually require? Cutting administrative spending. Reducing executive compensation. Scaling back amenities and non-instructional growth. Reprioritizing instruction and academic support over branding and “customer experience.” These are choices institutions have consistently shown they will not make.

    This is why the rhetoric of social mobility rings hollow. Colleges celebrate access and equity when the costs are externalized—when federal grants pay for the work and compliance offices manage the paperwork. But when that funding disappears, so does the institutional courage to sustain the mission.

    The contrast with historically Black colleges and tribal colleges is instructive. Their core federal funding survives precisely because it is tied to historical mission rather than contemporary enrollment metrics, and because these institutions have long-standing political champions. That distinction exposes the truth: what is preserved is not equity, but power.

    The coming months will bring program closures, staff layoffs, and diminished support for the students MSI grants were designed to serve. What we will not see, despite solemn statements and carefully worded emails, is a widespread commitment by colleges to fund these programs themselves.

    The test is simple and unforgiving. If social mobility were truly a foundational principle of higher education, institutions would treat MSI programs as essential—not optional, not grant-contingent, not expendable. They would pay for them out of their own budgets.

    They won’t.

    And in that refusal, the performance ends. The mission statements remain, but the money moves elsewhere.

    Sources

    Inside Higher Ed, “DOJ Report Declares Minority-Serving Institution Programs Unlawful,” December 22, 2025.

    U.S. Department of Justice, Office of Legal Counsel, Opinion on Minority-Serving Institution Grant Programs, 2025.

    U.S. Department of Education, Title III and Title V Program Data, Fiscal Years 2020–2025.

    Government Accountability Office, Higher Education: Trends in Administrative and Instructional Spending, various reports.

    Delta Cost Project / American Institutes for Research, Trends in College Spending, 2003–2021.

    State Higher Education Executive Officers Association (SHEEO), State Higher Education Finance Reports, 2010–2024.

    University of California Office of the President, California State Auditor Reports on Administrative Spending and Reserves.

    Texas Higher Education Coordinating Board; Florida Board of Governors; UNC System Office, public records and budget documents on DEI office eliminations, 2024–2025.

    Bloomberg News and Associated Press reporting on DEI bans and campus program closures, 2024–2025.

    National Center for Education Statistics (NCES), IPEDS Finance and Enrollment Data.

    American Council on Education, Endowment Spending and Restrictions in Higher Education.

    IRS Form 990 filings and audited financial statements of selected public and private universities.

    Columbia University public statements on federal research funding disruptions, 2025.

    University of Hawaiʻi system communications on federal grant losses and bridge funding, 2025.

    Congressional Budget Justifications, U.S. Department of Education, FY2025–FY2026.

    Ehrenreich, Barbara and John, The Professional-Managerial Class, and subsequent scholarship on administrative growth in higher education.

    Student Borrower Protection Center, Student Debt and Institutional Finance, 2024–2025.

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  • ED Reallocates MSI Funding to HBCUs, Tribal Colleges

    ED Reallocates MSI Funding to HBCUs, Tribal Colleges

    When the U.S. Department of Education abruptly ended grants for most minority-serving institutions last week, it raised questions about what the department would do with the hundreds of millions of dollars already slated for these programs. The department offered an answer Monday, announcing plans to repurpose funds from programs “not in the best interest of students and families” to historically Black colleges and universities, tribal colleges, charter schools, and civics education.

    “The department has carefully scrutinized our federal grants, ensuring that taxpayers are not funding racially discriminatory programs but those programs which promote merit and excellence in education,” Education Secretary Linda McMahon said in a statement. “The Trump Administration will use every available tool to meaningfully advance educational outcomes and ensure every American has the opportunity to succeed in life.”

    The department promised to direct an extra $495 million to HBCUs and tribal colleges, on top of the funds already anticipated for fiscal year 2025—increases of 48.4 percent and 109.3 percent, respectively. In total, HBCUs are slated to receive over $1.34 billion and tribal colleges expect to receive $108 million this fiscal year, which ends Sept. 30. The department is also giving an additional $60 million to charter schools and putting $137 million toward civics education grants. The department didn’t share more specifics on how it would allocate the funds to institutions.

    The move has been met with mixed reactions. Some HBCU advocates are celebrating the one-time influx as a game-changer for cash-starved institutions. Others’ joy is tempered by concern that the Trump administration is uplifting some MSIs at the expense of others, sowing tensions between them.

    The new funds come less than a week after the Education Department quashed grant programs for Hispanic-serving institutions and other MSIs, deeming them “unconstitutional” because they require colleges to serve a certain percentage of students from a particular racial or ethnic background to qualify. (HBCUs and tribal colleges don’t have enrollment thresholds.) This blow to MSI grants, as well as cuts to teacher prep and gifted and talented programs, is paying for the department’s recent largess, The New York Times reported, citing several anonymous sources familiar with the department’s plans.

    Lodriguez Murray, vice president of public policy and government affairs at the United Negro College Fund, which represents private HBCUs, said the funds are “nothing short of a godsend” for institutions operating on lean budgets.

    “Now, all of a sudden, [HBCUs] have much more wherewithal to do the things, not just that take you from year to year, but can make an impact on your campus,” he said. He foresees HBCUs using the funds to buy property, improve their campus infrastructure and invest in student and faculty supports in new ways.

    Murray said he doesn’t have qualms about the money coming from the slashed MSI programs.

    He claimed many of these institutions are predominantly white, tend to have higher endowments than HBCUs and serve lower shares of Pell-eligible students. (Most enrollment-based MSIs are required to serve at least 50 percent low-income students. HBCUs have no such requirement but tend to enroll at least 70 percent Pell-eligible students.)

    As far as he’s concerned, the Trump administration is channeling “resources toward the institutions that seem to need it the most—and the institutions that have a better track record at taking students from underserved backgrounds and … changing the economic outlook of their lives,” Murray said. “That is the reason why we have no pause about receiving the funds this morning.”

    Harry Williams, president and CEO of the Thurgood Marshall College Fund, which represents public HBCUs, said he wants to see other types of MSIs thrive, and at the same time, he’s excited about how the new support could help HBCU students.

    He didn’t know the Trump administration planned to drop millions on the institutions, he said. And while TMCF regularly lobbies for HBCU funding, “candidly, we have never made any recommendations about where the money should come from to the administration, because that’s their decision in terms of how they operate.”

    He said he’s “sensitive” to the challenges facing MSIs, noting that TMCF has three predominantly Black institutions among its members. TMCF put out a statement last week in support of them when the department said it was ending MSI grant programs, including PBIs.

    “We do support MSIs and PBIs and all the groups in that category and recognize the importance of them having resources, too,” he said, “but our primary focus has always been working with HBCUs.”

    Pitting MSIs Against Each Other

    Marybeth Gasman, executive director of the Rutgers Center for Minority Serving Institutions, said HBCUs and tribal colleges deserve the money.

    These institutions have “always been underfunded” and “the federal government should always be thinking about ways to enhance them, especially based on our country’s history of racism and inequities,” she said.

    But Gasman believes other types of MSIs are also deserving of these resources. She pointed out that many Hispanic-serving institutions are community colleges, and they serve about a third of the country’s students over all, not just Latino students.

    The Education Department is “trying to pit different types of minority-serving institutions against each other,” even though MSI leaders and advocacy groups have worked together for years toward similar policy goals, she said. “And that is really, really troubling … I hope people don’t fall for that.”

    Gasman noted that department officials made a “purposeful” decision to share that new funds for HBCUs and tribal colleges came from defunded programs. She called the framing of the announcement “spiteful” and said she worries for the future of the MSI community.

    “There is enough pie for all of these institutions,” she said. “It’s not like you need to take from one to feed the others.”

    Dominique Baker, associate professor of education and public policy at the University of Delaware, said the funding for HBCUs and tribal colleges, while necessary, doesn’t lead her to believe the Trump administration has their best interests at heart.

    The funds are “a nice way” for the administration to claim “they hold no racial animus, because look at all the money that they’ve given to HBCUs,” Baker said, at the same time as they crack down on diversity, equity and inclusion at predominantly white institutions.

    “It can both be true that you are providing funding to institutions that deserve funding—and you are working to ensure that the institutions that you hold in high prestige resegregate,” she added.

    Executive Branch Overreach?

    The legality of the department’s move—cutting funding for some programs to be showered on others—is also a little murky. Department officials say they are relying on “existing flexibilities in discretionary grant programs” to move the money around.

    Amanda Fuchs Miller, former deputy assistant secretary for higher education programs under the Biden administration and now president of the higher ed consultancy Seventh Street Strategies, said under statute, the department legally has the right to “reprogram” funds within an account.

    But even if department officials are following the law, she said the “intent” of reprogramming was never to end programs authorized and continually funded by Congress, like the MSI programs. And the executive branch claiming it has the authority to declare anything unconstitutional is “the real problem.” So, as far as she’s concerned, the department went out of bounds by eliminating the MSI programs and regifting their money to other institutions.

    “It’s great that the HBCUs and TCUs will get more money—they need it,” Miller said. “Those students will benefit from it. But to take away funds from one group of students to help another group of students, that’s not beneficial to anybody. We should be pushing back to help all students succeed and have these resources.”

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