The Trump administration announced on Friday that it will not defend a decades-old federal grant program that supports colleges with large Hispanic student populations.
In a memo to Congress, the Justice Department said it agrees with a lawsuit that challenges the program, which provides funding to colleges and universities where at least 25% of undergraduates are Hispanic.
Congress created the initiative in 1998 after research showed Latino students were enrolling in and completing college at much lower rates than white students.
Justice Department officials now argue the program is unconstitutional because it gives schools an advantage based on race or ethnicity.
Tennessee and Legal Group Challenge Program
The state of Tennessee and the conservative group Students for Fair Admissions filed the lawsuit in June. They asked a judge to block the program, claiming it unfairly excludes schools.
Tennessee officials argued that while all of its public universities enroll Hispanic students, none meet the “arbitrary ethnic threshold” of 25%. As a result, they said, these schools lose out on tens of millions of dollars in funding.
On Friday, Solicitor General John Sauer confirmed the Justice Department would not defend the program. In a letter to House Speaker Mike Johnson, Sauer wrote that the program has “aspects” that are unconstitutional. He cited a 2023 Supreme Court ruling, which declared that “outright racial balancing” is “patently unconstitutional.”
The Justice Department declined further comment.
Conservative Group Behind Legal Challenge
Students for Fair Admissions is backing Tennessee in the case. The group, led by Edward Blum, previously challenged affirmative action at Harvard and the University of North Carolina. That lawsuit led to the 2023 Supreme Court decision that ended race-based admissions in higher education.
On Friday, Blum declined to comment on the new case.
Scope of the Program
Currently, more than 500 colleges and universities qualify as Hispanic-Serving Institutions (HSIs). Congress allocated about $350 million for the program in 2024. Colleges compete for the grants, which fund projects ranging from facility upgrades to science programs.
During his presidency, Joe Biden expanded support for Hispanic-serving universities. In 2023, he signed an executive order to create a presidential advisory board and boost funding. However, Trump revoked that order on his first day back in office.
Although Trump has called for dismantling the Education Department and cutting federal funding, his 2026 budget proposal surprisingly kept HSI grants and even requested a small increase. Despite this, Hispanic education leaders question his administration’s commitment.
Hispanic Universities Step In to Defend Program
Last month, the Hispanic Association of Colleges and Universities (HACU) filed a motion to intervene in the Tennessee case. The group said it could not rely on the government to defend its interests.
HACU argued that Trump’s agenda is “entirely adverse” to Hispanic colleges, noting his effort to close the Education Department and his stance against programs that address racial inequality.
Both Tennessee and Students for Fair Admissions did not oppose HACU’s request to join the defense.
Difference From Other Minority Colleges
Unlike historically Black colleges and universities (HBCUs) or tribal colleges, which receive special status based on their missions, any school can qualify as an HSI if Latino students make up at least 25% of undergraduates.
HSIs include large universities such as the University of Texas at Austin and the University of Arizona, along with many community colleges and smaller schools.
The Hispanic association insists the grants are constitutional. It argues the program ensures fairness since Hispanic-serving institutions enroll 67% of all Latino undergraduates nationwide but still receive less government funding than other schools.
Importantly, these colleges serve students of all races. For instance, Southern Adventist University in Tennessee has a student body that is 28% Hispanic and 40% white.
Rare Move by Justice Department
The Justice Department usually has a duty to defend federal laws. However, in rare situations, it can refuse if it believes the law is unconstitutional.
For example, the Obama administration declined to defend the Defense of Marriage Act in 2011. During his first term, Trump made a similar move by refusing to defend the Affordable Care Act.
This latest decision reflects the Trump administration’s wider push to roll back diversity, equity, and inclusion programs in government, education, and business. Officials argue such policies discriminate against white and Asian American people.