Education Department Redirects $1 Billion to HBCUs, Tribal Colleges, and Charter Schools

The department is reallocating grants that were earmarked for minority-serving institutions based on racial quotas.

Howard University, a historically black college in Washington, prepares for Election Day results on Nov. 5, 2024. Madalina Vasiliu/The Epoch Times

Discretionary federal grants programs will provide a major boost to K–12 charter schools across the nation, as well as higher education institutions that mainly serve blacks and American Indians, Education Secretary Linda McMahon announced on Sept. 15.

In fiscal 2025, charter schools will get about $500 million, and $495 million will go to historically black colleges and universities and tribally controlled colleges and universities.

These investments were moved from other federal education programs benefitting minority-serving institutions that “are not in the best interest of students and families,” McMahon said in a Sept. 15 statement.

“Today, the department is making three massive investments—redirecting financial support away from ineffective and discriminatory programs toward those which support student success,” she said.

“The department has carefully scrutinized our federal grants, ensuring that taxpayers are not funding racially discriminatory programs but those programs which promote merit and excellence in education.”

The Department of Education, which endorses universal school choice, previously allocated an additional $60 million for charter schools in June.

Last week, McMahon announced the cancellation of $350 million in 2025 federal grants that are centered around racial or ethnic quotas. These include programs specifically for Native Alaskans and Hawaiians, Pacific Islanders, Asians, Hispanics, and black people based on percentages of nonwhite participants, although $132 million in grants for some of those programs was appropriated by Congress and cannot be cut.

McMahon said her department will work with Congress to “re-envision” programs that support underprepared or under-resourced students without the use of racial and ethnic quotas.

With these grants, historically black colleges and universities will get a total of $1.34 billion in fiscal year 2025, the statement said.

The department also announced a new competitive grant program for American history and civic instruction. More than $160 million will be available.

McMahon said this program is aimed at inspiring “young people to be active and informed citizens.”

The Association of Public and Land-Grant Universities opposed the grant cancellations and said any changes to funding of minority-serving institutions should be decided by Congress.

“This action will negatively impact millions of students who have made these colleges and universities their destination of choice,” the association said in a Sept. 11 statement. “These educational institutions play a critical role in building a stronger America by preparing the next generation of leaders—educating students, conducting impactful research, and serving their communities and the nation.”