WASHINGTON, D.C. — The U.S. Department of Education and the Department of Labor announced plans to cancel the 2026 minority-serving institution (MSI) grant competitions and redirect more than $300 million to the Strengthening Institutions Program (SIP). The move eliminates dedicated funding streams for institutions serving large populations of Black, Hispanic, Native American, and other underrepresented students.
SIP is a capacity-building program designed to help underresourced colleges improve academic programs and infrastructure. Unlike MSI grants, SIP has no race- or ethnicity-related eligibility criteria. The 2026 SIP grant competition opened on May 21 and closes on June 23, with new priorities emphasizing workforce development, artificial intelligence, and short-term training programs. Assistant Secretary for Postsecondary Education David Barker defended the shift, stating in a news release, “The Trump Administration is investing in the future of higher education and ensuring that all students have access to high-quality programs.” He added, “Through our partnership with the Department of Labor, we are creating a modernized system that will be more responsive to labor market needs and bridge the gap between employment and education.” The administration argued that MSI programs are “unlawful” because they confer “government benefits exclusively to institutions based on racial or ethnic criteria.”
Amanda Fuchs Miller, former deputy assistant secretary for higher education programs in the Biden administration and president of Seventh Street Strategies, said the Education Department did nothing illegal by redirecting MSI discretionary grant money to SIP, noting that Congress left room in appropriations legislation for such reprogramming. However, she added, “Now MSIs are for sure competing against a broader group of colleges, so it’s definitely going to be a tougher competition.” Miller also said, “I definitely think they’re at a disadvantage.”
Antonio Flores, president and CEO of the Hispanic Association of Colleges and Universities, said SIP and MSI programs are not “interchangeable funding streams” but were “established in statute for distinct purposes and populations.” He warned that expanding SIP at MSIs’ expense contributes to a growing “sense of abandonment” among Hispanic-serving institutions and “confusion” about funding stability. Flores added that the shift “weakens long-standing federal commitments to institutions that are educating millions of students nationwide, including the majority of Latino students.” The Education Department redirected MSI funds to historically Black colleges and universities and tribal colleges in the previous year, a separate action from the current funding reallocation.