Trump Administration Cuts: How Colorado Colleges Supporting Students of Color Will Face Multi-Million Dollar Losses

The recent decision by the Trump administration to cut $350 million in funding for Minority-Serving Institutions (MSIs) is raising concerns in Colorado. This funding aimed to support colleges that enroll a high percentage of students from diverse backgrounds, such as Native American and Hispanic students.

On September 10, the U.S. Department of Education announced it would redirect this money to Historically Black Colleges and Universities (HBCUs) and tribal colleges. However, Colorado does not have any HBCUs or tribal colleges, meaning 14 public MSIs in the state will face significant financial losses. Six of these schools currently receive federal grants.

The state’s colleges, especially community colleges, will feel the impact. For example, the Colorado Community College System stands to lose about $5.1 million among its designated Hispanic-Serving Institutions (HSIs). These funds are crucial for programs designed to help students succeed, including retention efforts and support services.

Educational leaders are still assessing how these cuts will affect student services. As Fiona Lytle from the college system noted, the loss could hinder programs essential for helping students stay in school.

The Education Department justified its decision by stating that the grants benefited schools based on racial or ethnic quotas. Secretary of Education Linda McMahon mentioned, “We will no longer award Minority-Serving Institution grants that discriminate by restricting eligibility to institutions that meet government-mandated racial quotas.”

The MSI designations have been in place for decades. For example, the Hispanic-Serving Institution designation was created in 1992 for schools that enroll at least 25% Hispanic students. Advocates argue that these grants not only assist students of color but benefit all students in colleges that accept nearly all applicants.

Conservative activists have long opposed these funding initiatives. In fact, a lawsuit by a conservative group claims that the funding for HSIs is discriminatory. As such, further budget cuts are expected for the fiscal year 2026.

In Colorado, several universities hold HSI designations, including the University of Northern Colorado and Colorado State University Pueblo. Adams State University, the oldest HSI in the state, recently received a $3 million grant to enhance college prep and student support. However, CSU Pueblo, which became an HSI in 2007, is facing a $3.6 million loss over the next three years, forcing it to reevaluate critical student services.

Fort Lewis College, established as a Native American-Serving Nontribal Institution, will not be able to use $2.27 million in grant funding that supports essential programs for students in the Southwest Colorado region.

In addition to these financial challenges, there’s a broader conversation about the importance of representation and access in education. According to a 2022 report by the National Center for Education Statistics, only 43% of students of color enter higher education, compared to 61% of their white peers. This funding loss could further widen these gaps.

Overall, the cuts threaten the progress made in supporting diverse student populations in Colorado. With many colleges already struggling, the road ahead may be tough for institutions and students alike. The ultimate impact remains to be seen, but it’s clear that the educational landscape is evolving rapidly, and the disadvantaged communities might be left to bear the brunt of these changes.



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