Trump Administration Declares Unconstitutionality of Decades-Old Funding for Hispanic Colleges, Sparks Legal Challenge
The United States Department of Justice announced on Friday that it will not defend a long-standing grant program for colleges with substantial Hispanic student populations, citing constitutional concerns.
In a letter to Congress, the Department stated its agreement with a lawsuit aiming to abolish grants reserved exclusively for institutions where at least 25% of undergraduates are Hispanic. The program was established in 1998 following the recognition that Latino students were attending and graduating college at significantly lower rates compared to their white counterparts.
The Department argued that the program offers an unconstitutional preference based on ethnicity or race. In June, a lawsuit was filed by the state of Tennessee and an anti-affirmative action organization against the United States Department of Education, calling for a court injunction against the Hispanic-Serving Institution (HSI) program. The suit contends that while all public universities in Tennessee serve Hispanic students, none meet the “arbitrary ethnic quota” required to qualify for the grants, resulting in millions of dollars in lost funding for affected schools.
In a July 25th letter, Solicitor General John Sauer notified Republican House Speaker Mike Johnson that the Department will not defend the program due to its constitutional shortcomings. The letter references a 2023 Supreme Court decision declaring “overt racial balancing” as unconstitutional.
The Department declined to comment on the matter. Tennessee’s lawsuit is supported by Students for Fair Admissions, a conservative legal organization that successfully challenged affirmative action in admissions at Harvard and the University of North Carolina. This led to a 2023 Supreme Court ruling prohibiting universities from considering race during admission decisions.
Over 500 colleges and universities currently hold the HSI designation, making them eligible for the grant program, which received approximately $350 million in funding in 2024. Colleges compete for these grants, which can be utilized for various purposes such as infrastructure improvements and science programs.
During former President Joe Biden’s tenure, Hispanic-serving universities became a priority, with the establishment of a new presidential advisory board and increased funding. However, during President Donald Trump’s first day in office, he revoked this order. Despite advocating for department dismantlement and substantial budget cuts, Trump’s 2026 budget proposal preserved grants for Hispanic-serving universities and even requested a slight increase in funding.
Doubts have emerged regarding the administration’s commitment to these funds. Last month, a national association of Hispanic-serving universities filed a motion to join the Tennessee lawsuit as a defendant, expressing concern that the federal government may not adequately represent their members. The Hispanic Association of Colleges and Universities stated that Trump’s agenda is detrimental to its interests, citing the president’s intention to close the Department of Education entirely.
Unlike historically Black or Native American tribal colleges and universities, which receive designation based on their mission, any college can acquire HSI status if at least 25% of its undergraduate student body is Hispanic. The list of HSIs includes prominent institutions such as the University of Texas at Austin and the University of Arizona, along with many community colleges and smaller schools.
In their court filing, the national association argues that the grants are constitutional and help create a level playing field for its members. Schools affiliated with the association enroll 67% of the nation’s Hispanic undergraduate students but receive significantly less in state and federal funding compared to other institutions. Hispanic-serving universities are open to students of all races, as demonstrated by Southern Adventist University in Tennessee, where the student body is 28% Hispanic and 40% white.
In rare instances, the Department of Justice may decline to uphold constitutionality or federal legislation. The Obama administration did so in 2011 when it refused to enforce the Defense of Marriage Act. During his first term, Trump similarly declined to defend the Affordable Care Act.