ACE, joined by 20 other higher education associations, sent a letter to congressional leaders last week urging them to reverse the Department of Education’s decision to terminate FY 2025 discretionary grant funding for Minority-Serving Institutions (MSIs). The groups are also calling on Congress to maintain its longstanding bipartisan support for these programs in the FY 2026 budget.
The Oct. 3 letter, addressed to House and Senate leadership, was written in response to the department’s recent move to eliminate MSI grant funding and redirect it solely to Historically Black Colleges and Universities (HBCUs) and Tribal Colleges and Universities (TCUs). According to the department, the decision was driven by legal concerns following the Supreme Court’s Students for Fair Admissions ruling.
The associations argue that this shift will cause “irreparable harm” to the hundreds of institutions currently receiving funding—most of which are open- or near-open-enrollment—and to the millions of students who attend them.
“These HBCUs, TCUs, and MSIs serve the largest proportion of students who are least advantaged with the greatest financial need, and all of these institutions need increased federal investment,” the letter states.
Abrupt Cuts, Broad Impact
The letter underscores that more than 450 MSIs are currently receiving federal support under Titles III and V of the Higher Education Act, with nearly 1,500 more eligible. These include Hispanic-Serving Institutions, Predominantly Black Institutions, Asian American and Native American Pacific Islander-Serving Institutions, Alaska Native and Native Hawaiian-Serving Institutions, and Native American-Serving Nontribal Institutions.
Eliminating funding this late in the fiscal year, the groups write, will directly harm the educational experiences of all students on their campuses. They note that the president’s FY 2026 budget request included level funding for these programs and described them as critical to improving academic quality, fiscal stability, and student support at institutions that serve large percentages of low-income students and students of color.
Call for Congressional Action
The higher education associations are asking Congress to act on two fronts: restore MSI funding that was “unilaterally and unexpectedly terminated in FY 2025,” and ensure continued, equitable investment in all eligible institutions in FY 2026.
Although the Department of Education has cited legal risk as justification for the cuts, the groups argue that the department’s response sets a troubling precedent and threatens the future of federal support for underserved student populations.
“Congress has funded these programs with strong and continuous bipartisan support,” the letter emphasizes. “All these institutions have value, and Congress should continue to demonstrate its history of strong bipartisan support.”