WASHINGTON (RTW News) — The Trump administration is redirecting nearly $500 million in federal funding toward historically Black colleges and tribal colleges, a temporary investment mainly sourced from reductions in funding for other colleges that cater to significant numbers of minority students.

The funding announcement from the Education Department came just a few days after the administration dropped $350 million in grants primarily aimed at Hispanic-Serving Institutions, which officials denoted as unconstitutional due to specific enrollment thresholds by race.

Education Secretary Linda McMahon remarked that the refocusing aims to steer funds from “ineffective and discriminatory programs” toward initiatives that bolster student success.

“The Department has diligently reviewed our federal grants, ensuring that taxpayer money is not funding racially exclusive programs but rather those promoting merit and excellence in education,” McMahon stated.

Aside from the funding for HBCUs and tribal colleges, the department is also reallocating approximately $60 million for charter schools and $137 million for history and civics programs. Trump's executive action in January had mandated the agency to redirect federal money towards charter schools and other school choice initiatives.

This constitutes a 48% increase in funding for HBCUs and more than doubles the budget for tribal colleges, as per the Education Department's announcement.

The administration is openly exercising its power to repurpose discretionary funding to align with presidential priorities—made feasible by a recent stopgap funding bill that enhances executive authority over spending strategies.

Trump has historically branded himself as a supporter of HBCUs. During his first term, Congress added an annual $250 million allocation for these institutions. This year, he endorsed an executive action that guarantees an annual White House summit, along with the formation of an advisory board and other supportive measures for HBCUs.

The reallocation of funds is predicated on a designation of other minority-serving programs as “not in the best interest of students and families.” Previous assertions indicated that the funds for Hispanic-serving institutions would be transferred to programs that do not utilize ethnic quotas.

During the most recent cuts impacting the Hispanic-Serving Institution program, the administration reversed years of precedent, enacted by Congress in 1998, amid findings of significant educational disparities for Latino students compared to their white counterparts. Several other smaller programs catering to specific percentages of Asian American, Black, or Native American students also experienced cutbacks.

The reductions triggered sharp criticism from Democrats who highlight long-standing bipartisan support for such programs that have promoted socioeconomic mobility among working-class Americans.

A July memo by the Justice Department claimed that the prohibitive grants for Hispanic-Serving Institutions were unconstitutional since they favor colleges where at least 25% of undergraduates are Hispanic. The department opted not to defend the program in a lawsuit initiated by the state of Tennessee and the anti-affirmative action group, Students for Fair Admissions.

The litigants argue that all public universities in Tennessee serve Hispanic students, yet none qualify for funding based on the "arbitrary ethnic threshold," leading to substantial financial losses due to discriminatory restrictions, they claim.