Minority-Serving Institution Programs

(MSI Programs)

Department of Education

Proposed Cut

$354M

% Reduction

100.0%

Action Type

elimination

Who Is Served

Hundreds of Hispanic-Serving Institutions, Asian American/Pacific Islander-serving institutions

Summary

Minority-Serving Institution (MSI) Programs are competitive federal grants under Title III and Title V of the Higher Education Act that help colleges classified as Hispanic-Serving Institutions (HSIs) and Asian American/Native American Pacific Islander-Serving Institutions (AANAPISIs) build academic and student-support capacity. The FY2027 budget proposes eliminating the program entirely, cutting all $354 million (a 100% cut), so these institutions would have to compete for funds only through general, race-neutral grant programs instead.

Who Is Affected

The cut affects hundreds of colleges nationwide that qualify as HSIs (institutions with at least 25% Hispanic undergraduate enrollment) or AANAPISIs. There were 572 federally designated HSIs as of the 2021-22 school year, enrolling roughly two-thirds of all Latino college students, and about 55 AANAPISIs, mostly public two- and four-year colleges. HBCUs and Tribal Colleges and Universities are funded through separate line items and are not affected by this specific elimination.

What this cut would actually mean

If enacted, HSIs and AANAPISIs would lose a dedicated funding stream they have relied on since the 1990s and 2000s to build STEM programs, tutoring, advising, and retention services for low-income and first-generation students. Losing this money means fewer academic support staff, canceled tutoring and mentoring programs, and stalled facility or lab upgrades at colleges that educate millions of Latino, Asian American, and Pacific Islander students; these schools would have to compete against thousands of other colleges for the same general grant pool, meaning many will likely receive less money than before or none at all.

Sources

Trump budget proposal would cut $2.3 billion in education for 2027 — Reports the $354 million cut to minority-serving institution grants as part of the FY2027 Department of Education budget request.
DEPARTMENT of EDUCATION - Budget of the U.S. Government for Fiscal Year 2027 — Official FY2027 budget justification stating the elimination of the $354 million MSI Programs and the administration's constitutional rationale.
NASFAA: Trump's FY 2027 Budget Request Would Eliminate FSEOG, Slash FWS Funding, Increase Pell Grant — Confirms the $354 million MSI cut and lists the institution types affected, including HSIs, AANAPISIs, and Predominantly Black Institutions.
FY27 President's Budget Request Signals Major Shifts in Higher Education — Notes that the $354 million MSI elimination continues funding for HBCUs and Tribal Colleges separately, clarifying which institutions are and are not affected.
Hispanic-Serving Institution - Wikipedia — Provides the count of federally designated HSIs (572 in 2021-22) and the enrollment criteria used to define them.
U.S. Department of Education Ends Funding to Racially Discriminatory Discretionary Grant Programs at Minority-Serving Institutions — Department of Education's own announcement detailing the reprogramming of MSI discretionary funds and the legal rationale behind ending the grants.
AANAPISI factsheet - APAHE — Describes the number and type of currently funded Asian American and Native American Pacific Islander-Serving Institutions.