The U.S. Department of Education announced last week that it is cutting federal funding for colleges and universities that serve large numbers of Hispanic students, while at the same time increasing funds for institutions originally created to serve Black and Native American students. The announcement has drawn attention and concern in the Inland Empire, especially at Cal State San Bernardino, where nearly 70 percent of the student body identifies as Hispanic.
The decision followed a ruling in late July by the U.S. Solicitor General, who determined that it is unconstitutional for the federal government to award grants based on the percentage of Hispanic students a college serves. In response, the Department of Education ended several discretionary grant programs that had together distributed about $350 million to minority-serving institutions this year. While these institutions will still receive about $132 million in mandatory funding under federal law, officials in Washington noted they are also reviewing the legality of that funding stream, raising additional uncertainty for the future.
For decades, minority-serving institutions, commonly referred to as MSIs, have received federal support as part of a broader effort to help underrepresented students succeed in higher education. These include Hispanic-Serving Institutions like CSUSB, Historically Black Colleges and Universities, and Tribal Colleges and Universities. Nationwide, more than 800 schools fall into one of the MSI categories, with Hispanic-Serving Institutions making up about 70 percent of them. California, Texas, New York, and Puerto Rico are home to the largest numbers of HSIs. The programs have historically funded tutoring, mentoring, research opportunities, and outreach designed to improve retention and graduation rates among students who often face systemic barriers to completing their degrees.
At CSUSB, students and faculty say the funding cuts will directly affect the services that keep many Coyotes enrolled and thriving. Elizabeth Lopez, a junior majoring in communication, explained that her parents have sold tamales and champurrado at local swap meets for more than a decade and that her journey through higher education has depended on support from HSI programs. “Every time the police drive by, my mom tenses up,” Lopez said, recalling how difficult it has been for her family to find stability. “I got connected to mentoring and financial aid workshops through HSI funding. If that’s taken away, students like me are going to be left without the help we need.”
For business major David Ramirez, the impact feels just as personal. His father has worked for years selling fruit on Riverside street corners, often losing equipment to confiscations and fines. Ramirez said that vending has always been his family’s main source of income and that the programs supported by HSI funding gave him the confidence to pursue a college degree. “For us, vending wasn’t just a job, it was our family’s stability,” he said. “But my dad has always been scared that one mistake could get him reported. If the governor signs this bill, it would finally give families like mine some peace of mind.” Ramirez added that losing federal support for CSUSB could undo progress made for families like his.
Faculty also expressed concern that the loss of funding will undercut gains in educational equity. Dr. Ana Gonzalez, a professor in the College of Education, emphasized that the HSI designation is not just symbolic but tied to programs designed for the specific needs of first-generation and low-income students. “Being an HSI is not just a label for us — it’s recognition of who we serve,” Gonzalez said. “When federal dollars are cut, it’s our students who feel it most, especially first-generation students who rely on tailored support to succeed.”
The funding changes arrive amid broader debates over race-conscious policies in higher education. In 2023, the U.S. Supreme Court struck down affirmative action in admissions, a decision that prompted conservative legal groups to challenge other race- and ethnicity-based programs, including MSI funding. These groups argue that federal support tied to demographics amounts to unconstitutional “racial quotas,” while supporters counter that the programs correct long-standing inequities and provide essential resources to communities historically excluded from higher education.
Although HBCUs and Tribal Colleges remain protected because their funding is tied to their historic missions, Hispanic-Serving Institutions are more vulnerable under the new framework. Nationwide, HSIs have been central to expanding access to college as Hispanic high school graduation and college enrollment rates have steadily increased over the past three decades. Data from the U.S. Census Bureau show that the share of Hispanic people aged 25 to 29 who completed high school rose from 58 percent in 1996 to 89 percent in 2021, and the number of Hispanics enrolled in college has more than doubled to 2.4 million. Without strong federal support, advocates worry that these gains will stall or even reverse.
At CSUSB, the uncertainty about future funding has left many wondering how the university will continue to support its students. Roughly two-thirds of the undergraduate population at CSUSB qualifies for Pell Grants, a federal aid program for students from lower-income households. Programs supported by HSI funding often bridge the gap between financial aid and academic success, giving students access to advising, counseling, and peer mentorship. Losing discretionary federal dollars means those services will face cuts at a time when the university is serving more first-generation students than ever before.
The Department of Education has not provided details on what alternative funding models might be developed, and for now, discretionary grants for HSIs have been eliminated. Advocates and university leaders are expected to appeal to Congress for relief, while others are preparing for leaner years ahead. For students like Lopez and Ramirez, however, the question is not just about budgets but about whether they and their families will continue to have the same access to opportunity. As Lopez put it, “We come here to pursue education as a way forward. Cutting the programs that help us succeed feels like cutting into our future.”