Strengthening Institutions Program Grows at MSIs' Expense

The Department of Education and the Department of Labor plan to eliminate 2026 MSI grant competitions and redirect hundreds of millions of dollars to the Strengthening Institutions Program. Many expect minority-serving institutions to still benefit because they can apply for SIP funds. Others worry MSIs will lose federal support because SIP is a broader competition without the specific funding pools Congress previously designated for MSI programs. Administration officials claim MSI programs are unlawful because they provide government benefits exclusively based on racial or ethnic criteria, while SIP uses no race- or ethnicity-related criteria. The change follows earlier redirections of MSI-related funds toward historically Black colleges and universities and tribal colleges. SIP priorities will emphasize workforce development, artificial intelligence, and short-term training, with more than $300 million planned for distribution.

"ED and the Department of Labor, which has taken over some of the Education Department's functions, announced plans to nix 2026 MSI grant competitions last Thursday, directing hundreds of millions of dollars to SIP instead. Many hope that MSIs, underresourced by definition, may still benefit from the funds, for which they are free to apply. But some worry the institutions will inevitably lose out on federal dollars by competing in a broader contest without the specific pools of funding Congress has historically designated for them."

"Administration officials argued in a news release that MSI programs are "unlawful" because they confer "government benefits exclusively to institutions based on racial or ethnic criteria." (MSI designations are defined partly by race-based enrollment thresholds, in addition to low per-student expenditures and high numbers of low-income students.) SIP has no race- or ethnicity-related criteria."

"The move comes as another blow to MSIs after the Education Department last year redirected funds for their institutions to historically Black colleges and universities and tribal colleges. The departments also announced a shift in this year's SIP priorities to focus on workforce development, artificial intelligence and short-term training programs, similar to other recently announced grant competitions. They plan to dole out upward of $300 million in SIP funds."

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