NASFAA Calls on Congress to Restore ‘Critical’ MSI Funding
By Maria Carrasco, NASFAA Staff Reporter
After the Department of Education (ED) announced that it would end discretionary funding to most Minority-Serving Institutions (MSI), NASFAA, along with 20 other higher education organizations, called on congressional leaders to restore this funding and to increase federal investments for MSIs in fiscal year (FY) 2026.
Earlier in September, ED announced that it would terminate FY 2025 funding for most MSIs. According to the department, this was in response to a determination made by the U.S. Solicitor General’s programs for Hispanic-Serving Institutions (HSI) “violate the equal-protection component of the Fifth Amendment's Due Process Clause,” and the Department of Justice (DOJ) would not defend these institutions in ongoing litigation.
ED wrote that it agrees that the racial quotas in the HSI programs are unconstitutional, and therefore is using its statutory authority to redirect funding to programs that “do not have these concerns” – such as Historically Black Colleges and Universities (HBCUs) and Tribal Colleges and Universities (TCUs). According to ED, approximately $350 million in discretionary funds were expected to be allocated to support these programs in FY 2025.
In response to this announcement, the American Council on Education (ACE) led a letter calling on congressional leaders to restore this funding, noting that the funds MSIs receive are critical for students, especially those “who are least advantaged with the greatest financial need.”
“The abrupt and deeply damaging elimination of funding this late in the fiscal year for MSIs will cause irreparable harm to hundreds of institutions that are currently receiving funding, most of which are open or near open enrollment,” the letter reads. “In addition, millions of students of all colors that attend these institutions across all regions of the country will be impacted if not corrected.”
Not only should Congress restore funding for MSIs, the organizations wrote, but Congress should also expand funding for MSIs, HBCUs, and TCUs in the FY 2026 appropriations process.
The organizations noted that over the past several decades, funding for these programs has had bipartisan support, even noting that the Trump administration advocated funding for HBCUs, TCCUs, and MSIs in its FY 2026 budget request.
Furthermore, the organizations argued that the funds MSIs are receiving, and are eligible to receive, fall under Titles III and V of the Higher Education Act (HEA). MSIs enroll millions of students, and terminating funding for these institutions will harm students.
“We ask you to continue to support these millions of students and the institutions that serve them by providing sufficient funding for MSIs in FY 2026 and restore the funding for these programs that was terminated in FY 2025,” the letter reads. “All these institutions have value, and Congress should continue to demonstrate its history of strong bipartisan support.”
Publication Date: 10/9/2025
David S | 10/9/2025 9:1:17 AM
Thank you for standing up for what's right, NASFAA.
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