The Trump administration announced on Friday that it will not defend a long-running federal grant program for colleges with large Hispanic student populations. The government now argues that the program, created more than two decades ago, is unconstitutional.
Justice Department Sides With Lawsuit Against Program
In a memo to Congress, the Justice Department said it supports a lawsuit that challenges federal grants reserved for colleges and universities where at least 25% of undergraduates are Hispanic. Lawmakers created the initiative in 1998 after studies showed Latino students enrolled in and graduated from college at much lower rates than white students.
Justice Department officials now argue that the funding gives an unconstitutional advantage based on race or ethnicity.
Tennessee and Anti-Affirmative Action Group Lead the Challenge
The state of Tennessee and Students for Fair Admissions, a conservative group known for overturning affirmative action at Harvard and the University of North Carolina, filed the lawsuit in June.
Tennessee claimed that while all of its public universities educate Hispanic students, none qualify for the grants because they do not meet the “arbitrary ethnic threshold.” As a result, the state says its schools lose out on tens of millions of dollars.
On Friday, Solicitor General John Sauer informed House Speaker Mike Johnson in writing that the Justice Department “has decided not to defend” the program, calling certain elements unconstitutional. The July 25 letter referred to a 2023 Supreme Court ruling that said “outright racial balancing” is “patently unconstitutional.”
The department declined to comment further.
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Hispanic Colleges Say Program Is Essential
Currently, more than 500 colleges and universities are recognized as Hispanic-Serving Institutions (HSIs), which makes them eligible for the grants. Congress allocated about $350 million in 2024 for the program, with colleges competing for funds that can be used for campus upgrades, science labs, or academic support.
Former President Joe Biden supported Hispanic universities, signing an executive action to increase funding and establish a presidential advisory board. But Donald Trump reversed that order on his first day in office.
Although Trump has pushed to dismantle the Education Department, his 2026 budget request did propose keeping HSI grants and even asked for a slight increase. Still, Hispanic education advocates doubt his long-term commitment.
Hispanic Colleges Step In to Defend Themselves
Last month, the Hispanic Association of Colleges and Universities (HACU) filed a motion to join the case as a defendant, fearing the government would not defend the program.
The group accused the administration of being “entirely adverse” to its mission, noting Trump’s plan to shut down the Education Department and his public opposition to programs that address racial disparities. Tennessee and Students for Fair Admissions did not oppose the association’s request to lead the legal defense.
How HSIs Differ from Other Minority Institutions
Unlike historically Black colleges or tribal universities, which are defined by their missions, any college can become an HSI if at least 25% of undergraduates are Hispanic.
The list of HSIs includes large universities such as the University of Texas at Austin and the University of Arizona, as well as many smaller colleges and community schools.
According to HACU, HSI institutions enroll 67% of all Latino undergraduates in the U.S., yet they consistently receive less state and federal funding than other schools. The association also stressed that HSIs serve students of all backgrounds. For example, Southern Adventist University in Tennessee has a student body that is 28% Hispanic and 40% white.
Broader Fight Over Race-Based Policies
The Justice Department usually defends federal laws, but there are rare exceptions. In 2011, the Obama administration declined to uphold the Defense of Marriage Act, and during his first term, Trump refused to defend parts of the Affordable Care Act.
The current move fits into a broader push by Trump to end diversity, equity, and inclusion (DEI) efforts in education, government, and business. His administration argues such programs discriminate against white and Asian American students.
