Congress Gave MSIs Funding, but Uncertainty Looms

"Congress appropriated funding for MSI grant programs for the current fiscal year, including small increases for most, in the budget enacted earlier this month. But the legislation also leaves some room for the Trump administration to move the money around after government officials repeatedly signaled they're against doling out the funds. That puts the upward of $400 million Congress allocated for MSIs and other related programs at risk."

"Minority-serving institutions already lost hundreds of millions of dollars when the Education Department refused to give out discretionary grants to certain types of MSIs in September, arguing they amounted to 'discrimination.' The money was then redirected to tribal colleges and historically Black colleges and universities. Hispanic-serving institutions, predominantly Black institutions and others scrambled to fund programs and student services supported by the grants, and some were forced to lay off personnel."

"Although the latest federal budget prevents the Trump administration from shifting MSI funds to tribal colleges and HBCUs again, the language of the bill does seem to technically allow the department to move MSI funding across other programs in Title III and Title V of the Higher Education Act, including the Strengthening Institutions Program, a capacity-building grant for underresourced colleges that serve high numbers of low-income students."

Minority-serving institutions confront significant funding uncertainty despite Congress appropriating over $400 million for MSI grant programs in the current fiscal year. The Trump administration has signaled opposition to distributing these funds, creating risk for the appropriations. Previously, the Education Department refused to distribute discretionary grants to certain MSI types in September, redirecting hundreds of millions to tribal colleges and HBCUs instead. This forced Hispanic-serving institutions, predominantly Black institutions, and others to cut programs and lay off staff. While the latest budget prevents redirecting MSI funds to tribal colleges and HBCUs again, language allows the department to shift MSI funding across other Title III and Title V programs. MSIs now face uncertainty about accessing appropriated federal dollars and are considering whether to fight for funds or pursue alternative sources.

Read at Inside Higher Ed | Higher Education News, Events and Jobs