Historically Black and Tribally Controlled Institutions to Receive Repurposed Funds
The Department announced that funds cut from Minority-Serving Institutions will be redirected to HBCUs, Tribally Controlled Colleges and Universities (TCCUs), and charter schools. In a move that some have characterized as pitting institutions against one another, the Department will divide $495,000,000 between HBCUs and TCCUs and award $500,000,000 to charter schools.
The funds were cut after the US Department of Justice (DOJ) declined to defend the Department of Education against allegations of discrimination made in a lawsuit filed by the State of Tennessee and the organization, Students for Fair Admissions.
The plaintiffs took aim at Minority-Serving Institutions calling the designations discriminatory because they are based on enrollment data and thresholds. In agreeing with the plaintiffs, the DOJ called the thresholds quotas.
Because the grants the designees received were competitive, the Hispanic Association of Colleges and Universities (HACU) petitioned the court to add it as a defendant. HACU stressed that the grants are often used for capacity-building initiatives which benefit the whole campus community. However, rather than mount a defense, the Department announced it would no longer disburse the discretionary grants— effectively shutting down the programs. The cuts impact institutions previously designated as Predominately Black, Hispanic-serving, Native-American-serving, Alaska Native and Native Hawaiian-serving, and Native American Pacific Islander-serving.
The Department also sent grant cancelation notices to recipients of Title VI International Education grants citing conflict with the current administration’s priorities. The cuts end support for foreign language instruction and international studies. The following grants were canceled: National Resource Centers; Foreign Language and Area Studies Program; Undergraduate International Studies and Foreign Language Programs; International Research and Studies; Centers for International Business Education; Language Resource Centers; and American Overseas Research Centers.
Although the notice offered awardees a seven-day window to submit an appeal, it also indicated that the funds had been repurposed already. According to a report in the National Association of Independent Colleges and Universities, the funds were part of the bundle redirected to HBCUs, TCCUs, and charter schools.
HBCUs and African Institutions
UNCF’s Institute for Capacity Building and 8B Education Investments unveiled an initiative aimed at strengthening ties between HBCUs and African Institutions of Higher Education. The initiative includes student and faculty exchange programs, joint and dual degree programs, networking, training, and mentoring opportunities. The announcement was made during an international conference hosted by UNCF, the Association of African Universities, the Historic African Diaspora Placement Program and the African Capacity Building Foundation. You can watch a recording of the conference on Youtube.
Terror Threat Hoaxes
Several HBCUs closed and issued shelter-in-place orders after receiving threats. However, no incidents or injuries were reported and it appears all the threats were hoaxes.
Extra Scrutiny for TRIO Programs
In response to reports that it terminated grants to Upward Bound and other TRIO Programs, the Department announced that it was reviewing the grants. To date, some institutions have received their awards, some have received cancelation notices, and others have not received any information.
The cancelation notices reportedly cite conflict between the programs and the Department’s anti-DEI policies, Critics contend that some programs—like one that serves students who are both deaf and blind—seem to have been terminated based on a keyword search rather than an objective assessment.
TRIO programs generally enjoy bipartisan support and recently members of Congress urged the president to release the funds as appropriated. The Council for Opportunity in Education (COE), estimates over $600,000,000 in TRIO funding remains frozen. Anticipating problems, in May COE published a FAQ. If unallocated by the end of the fiscal year, funding for some TRIO programs is likely to be sent back to the Treasury Department.
Fee Added to Visa Application
A memo published by the director of the US Citizenship and Immigration Services (USCIS) clarified that the new $100,000 fee levied on H-1B visa applications is NOT a recurring annual fee. Further, it does not apply to current workers, those who participated in the 2025 lottery, or individuals seeking to renew their visas. The fee went into effect Sunday, September 21, 2025, and will expire after a year. It is separate from and in addition to lottery registration fees, filing fees, and the new visa integrity fee introduced in the One Big Beautiful Bill Act. Experts believe that although they have other options, such as J-1 and F-1, the fee on H-1B visas may hit some institutions hard, as many graduate students, postdoctoral fellows, faculty, and researchers hold that type of visa. The USCIS publishes an FAQ page and an online fee calculator.
Priorities for Discretionary Grants Finalized
The Department of Education published a final rule in the Federal Register listing the priorities and definitions it will use in administering discretionary grant programs. The rule goes into effect October 9, 2025.
Student Financial Aid Administrator Survey
The number of financial aid administrators who note disruptions and delays in support provided by the Department continues to rise according to a survey conducted by the National Association of Student Financial Aid Administrators. A representative of the Department dismissed the survey as flawed.
Anti-Espionage Reference Updates
The Department announced the release of a bulletin and a reference guide for colleges and universities to help mitigate foreign threats to research. The documents were posted as updates on the Safeguarding Our Future page of the National Counterintelligence and Security Center.
Changes to Office of the Ombudsman
According to a press release published by the Department, the Office of the Ombudsman will be renamed the Office of Consumer Education and Ombudsman. It will no longer focus on resolving borrower disputes and complaints. Instead, it will focus on improving borrower financial literacy, providing information on the benefits and risks associated with federal student loans, and oversight of servicers and collectors.
IRS Releases Guidance on Clean Energy Credits
The IRS provided information clarifying the termination of renewable clean energy tax credits and providing information on the applicable deadlines for beginning construction on wind and solar facilities in that regard. The clean energy credit policy was rescinded by executive order.
Undermining the Original Intent of Title VI
The American Association of University Professors released a report on the federal government’s use of Title VI of the Civil Rights Act of 1964 as a weapon to force institutions to abandon the very protections the statute was enacted to protect. In
On Title VI, Discrimination, and Academic Freedom, the organization traces the developments that led to this redefinition of discrimination and the use of the allegation to force institutions to adopt changes that they would not consider otherwise. The report also offers recommendations to counter these challenges.
Harvard University
The Department announced it has placed Harvard University on heightened cash monitoring citing financial responsibility concerns. In a separate announcement, the Department said it issued a Denial of Access to the university, ordering it to surrender admissions data within twenty days.
The move comes on the heels of a judicial ruling that found the mass termination of Harvard’s federal grants and contracts violated the Administrative Procedure Act, Title VI, First Amendment rights and academic freedom. In her ruling, Judge Allison D. Burroughs acknowledged Harvard had admittedly fallen short in combating antisemitism but found the federal government’s response had little to do with antisemitism.
Judge Burroughs also addressed jurisdiction—an issue which has impeded disbursement of reinstated funding in similar cases. The National Institutes of Health and the National Science Foundation have begun restoring grants. However, a spokesperson for the federal government said it plans to appeal the ruling.
University of California System
In a lawsuit, brought by the University of California System against the Departments of Defense, Transportation, and Health and Human Services over termination of grants, US District Court Judge Rita F. Lin found the cancelations violated the Administrative Procedure Act and lacked adequate specificity and rationale. She ordered restoration of grants already cut and prohibited the agencies from terminating additional grants without a grant-specific explanation.
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