More than 100 universities and colleges across Texas have lost access to a significant source of federal funding after the Trump administration discontinued grants designated for minority-serving institutions. The change eliminates nearly $60 million in anticipated funds for Texas schools this year, creating uncertainty for programs that support student success, academic development, and career readiness.
The funding was available to institutions with a Hispanic Serving Institution (HSI) designation, which requires a student body of at least 25% Hispanic enrollment. University officials state these grants provided critical resources that benefited their entire student populations, not just a single demographic.
Key Takeaways
- Over 100 Texas colleges and universities have lost eligibility for specific federal grants.
- The national funding cut totals $350 million, with Texas institutions expecting nearly $60 million.
- Funding supported programs in mental health, career services, and academic support for all students.
- University leaders are concerned about the long-term impact on student retention and success initiatives.
Federal Policy Shift Halts Decades of Funding
The decision to end the grants followed a U.S. Department of Justice determination not to defend the constitutionality of funding programs where eligibility was limited to minority-serving institutions. Nationally, this policy change affects approximately $350 million in grants.
According to the Hispanic Association of College and Universities, Texas is home to more than one million students enrolled at HSI-designated schools. The grants, known as Title V grants, were used by these institutions to enhance infrastructure, improve academic offerings, and provide comprehensive student support.
What is a Hispanic Serving Institution?
The HSI designation was established in 1992 to recognize colleges and universities with a significant Hispanic student population. To qualify, an institution's undergraduate full-time equivalent enrollment must be at least 25% Hispanic. This designation made them eligible to apply for specific federal grants aimed at strengthening their capacity to serve all students.
In a statement, U.S. Education Secretary Linda McMahon described the grants as "discriminatory" and announced that the funds would be redirected. The department has indicated it will work to create a new grant program that does not use what it termed "racial quotas" for eligibility, but further details have not been provided.
Impact on Austin Universities
For smaller private universities in Austin, the loss of these grants raises significant concerns about their ability to sustain and expand essential student services. Leaders at St. Edward’s University and Concordia University Texas explained how this funding was instrumental in building programs that foster student success.
St. Edward’s University: A 30-Year History with HSI Grants
St. Edward’s University, a small Catholic institution in south Austin, was part of the inaugural group of HSIs in 1992. For three decades, the university has successfully applied for and utilized these grants to support its diverse student body, where about half of the students are eligible for Pell Grants.
Montserrat “Montse” Fuentes, President of St. Edward’s University, emphasized that the funding helped create a supportive environment for all students.
"We prioritize student success, and that’s not going to change. But not having access to that type of funding would impact the speed and the volume of the support and the initiatives that we can set in place to help students."
Funding at St. Edward's
In the last 10 years alone, St. Edward's University received 11 HSI grants totaling $4 million. These funds were used to:
- Improve technology infrastructure to prepare students for modern workplaces.
- Expand career services and undergraduate research opportunities.
- Provide faculty training to better support student needs.
Fuentes noted that these grant-funded programs were open to every student, regardless of their background, and contributed to increased student retention rates. "This vital support strengthens our ability to serve all students and to build the infrastructure necessary to ensure their success — particularly for those from underserved communities," she said in a statement.
The university has also recently lost funding for other federal initiatives, including the McNair Scholars program for economically disadvantaged students and the College Assistance Migrant Program, which had supported over 2,800 students at the university since 1972.
Concordia University Texas: New Programs Now at Risk
Concordia University Texas, a faith-based institution, earned its HSI status in 2019. In 2023, the university secured a five-year grant to launch two new initiatives. This fiscal year, the award amounted to nearly $570,000.
Cindy Melendez, Chief of Staff for Concordia's leadership, explained that the grant allowed the university to address specific student needs. "We were able to look at the data and say, ‘With our HSI status, how do we look at different services differently and see what’s being utilized, what needs a little bit more help in terms of infrastructure?’" she said.
A portion of the funding was used to hire an additional mental health counselor, which cut the wait time for appointments in half. The remainder supported a transition program designed to prepare incoming students for the academic and social demands of college life, with the goal of improving retention and graduation rates.
Melendez confirmed that these programs were available to all Concordia students. With the grant funding now terminated, the long-term future of these new positions and programs is unclear.
Students Voice Their Concerns
For many students, the HSI designation was a key factor in their college decision, representing a commitment to diversity and support for students from various backgrounds.
Sofia Sanchez, a junior at St. Edward’s University, said the designation gave her confidence. "It was important to me to go to school with people that have the same upbringing as me," she explained, noting her parents were unable to afford college. "It’s just very vital that places for marginalized groups exist."
Ava Buxton, a transfer student at St. Edward’s who aims to become a civil rights lawyer, said she was excited by the diverse environment the HSI status promised. She worried that without it, classroom discussions could become an "echo chamber" of intellectual theories disconnected from lived experiences.
The funding cuts are seen by some as part of a broader trend. Camilla Escobar, another St. Edward's junior, described it as contributing to an "increasingly hostile environment for students of color." However, she also noted that such decisions are motivating students to become more civically engaged. "They do want to know more, because now they’re seeing how much it affects them personally," she said.
Looking Ahead: The Search for Alternative Funding
The loss of HSI-specific grants means these smaller universities must now compete for federal funding in a much larger pool of nearly 4,000 higher education institutions nationwide. This makes securing resources for targeted student support programs significantly more challenging.
President Fuentes of St. Edward's stated that the university will increasingly rely on community donors, foundations, and other grants to fill the gap left by the federal cuts. "What is not changing for us is the commitment that we have to our students and the dedication to our mission to serve vulnerable communities," she said.
She stressed that while the university and its community are stepping up, they cannot do it alone. Fuentes urged those interested in helping to contact impacted institutions to learn about their needs, emphasizing that non-governmental support is now more critical than ever.