The Trump administration is attempting to eliminate diversity, equity and inclusion programs as part of a broader campaign to end what it calls “conscience” in American education.
As part of this rollback, the Department of Justice announced in July 2025 that it would no longer uphold the federal definition of Hispanic Serving Institutions (HSIs). These are universities where at least 25% of undergraduates identify as Hispanic or Latino.
This is more than a legal technicality: it reflects the Department of Justice’s position that HSI grants violate constitutional protections, putting at risk millions of federal funds intended for these schools.
Based on this legal basis, the US Department of Education confirmed in September the freezing of $350 million in educational grants to Minority Serving Institutions. This includes more than $250 million for HSIs specifically.
The Department maintains that these programs constitute racial discrimination because they tie federal grants to students’ racial or ethnic origins.
This echoes the Supreme Court’s 2023 decision, which limited how colleges can consider race and ethnicity in admissions. I am the University Diversity Officer at California State University, Chico, a higher education institution (HSI). I am also a researcher in ethnic studies specializing in equity in higher education.
HSI advocates say ending federal funding would hurt already underfunded colleges, particularly those that serve large numbers of first-generation and low-income students.
What are the institutions that serve Hispanics?
Congress created the HSI designation in 1992 through an amendment to the Higher Education Act of 1965. This amendment authorizes federal grants to help strengthen colleges that enroll large numbers of low-income and Hispanic students, providing them with greater opportunities for success and graduation.
There are more than 600 federally designated HSIs in the United States and Puerto Rico. California is home to the most, with 167, followed by Texas, Puerto Rico, New York and Illinois.
In addition to demonstrating that at least 25% of its student population is Hispanic or Latino, any college or university seeking to qualify as an HSI must also demonstrate that at least half of its students come from low-income backgrounds.
Becoming an HSI allows colleges and universities to apply for federal funds intended to support underrepresented and low-income students.
HSIs vary in size and mission
HSIs enroll more than 1.5 million Hispanic students, equivalent to more than 60% of all Hispanic college students in the US.
This represents a large increase from the 340,000 Hispanic college students who attended an HSI in 1995.
Some of these schools are large public research universities, such as the University of California, Riverside, the University of California, Santa Barbara, and the University of California, Santa Cruz. Others are regional institutions, private universities, and local community colleges.
Over the past decade, another type of Hispanic-serving institution has emerged: HSIs with an intensive focus on research. These are universities where at least 25% of the student body is Hispanic, have significant funding for research, and offer various doctoral programs. These institutions include the University of California at Irvine, Florida International University, and the University of Texas at El Paso, among others.
Some researchers have debated whether the HSI category has become too broad, grouping together schools with very different resources, missions, and student populations.
Despite their differences, many HSIs enroll large numbers of first-generation, low-income, and working students, as well as immigrants and transfer students.
HSIs also typically operate with fewer financial and academic resources than comparable non-HSI institutions.
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How HSI Financing Works
Title V grants from the Department of Education are one clear way HSIs can receive federal funds.
These competitive grants are intended to help HSIs expand educational opportunities and institutional capacity to support low-income and Hispanic students.
Instead of providing aid directly to students, Title V grants are used to provide training for faculty, update classrooms and laboratories, create new degree programs, and develop mentoring opportunities for first-generation students.
At campuses like California State University, Chico and the University of California, Irvine, Title V grants have given schools the money needed to create bilingual counseling services and maintain data systems.
Title V grants are just one part of the overall HSI funding picture. Like many colleges, HSIs rely on state funding and tuition revenue. They also compete for other federal grants, such as those from the National Science Foundation and the Department of Agriculture.
How does HSI aid work for Hispanic students?
A growing body of research shows that HSIs are crucial to helping more Hispanic and first-generation students attend and graduate from college.
Some higher education institutions (HSIs) have received national recognition for using evidence-based practices to help Hispanic students improve their academic performance. Hispanic students at these institutions — including Arizona State University and California State University, Fullerton — graduate at rates approximately eight percentage points higher than Hispanic students nationally.
Hispanic students at HSIs graduate at rates five percentage points higher than those at comparable non-HSI colleges, according to similar 2017 findings from the nonprofit Education Trust.
There are several reasons why the graduation rates of Hispanic students at HSIs are relatively high.
HSI students often express a strong sense of belonging and see their own cultures reflected in the curriculum. Many HSI campuses also offer programs specific to first-generation students and train faculty to teach and advise with equity and inclusion.
At the University of California, Irvine, where I helped lead HSI initiatives, Hispanic college enrollment grew nearly 150% between 2009 and 2019, going from 3,000 to more than 7,500 students.
During that time, more than 350 faculty and staff members completed equity-focused training to strengthen advising and teaching practices that support Hispanic students and other underrepresented groups.
What is at stake for HSIs?
Hispanic Americans now make up nearly 20% of the U.S. population and their college enrollment numbers are projected to increase from approximately 3.7 million in 2020 to 4.5 million in 2030, while overall college enrollment is projected to decline over this period.
A national evaluation of Title V projects found that most colleges and universities used these grants to improve student services, develop new academic programs, and build community partnerships that help first-generation and low-income students stay enrolled and complete their degrees.
As HSI researchers point out, graduation rates only reflect part of the truth. True student success at HSIs depends not only on the number of graduates, but also on culturally responsive teaching, an inclusive campus environment, and equity-based institutional practices.
*Joseph Morales is University Diversity Officer, Associate Professor of Ethnic Studies, California State University, Chico
This article was originally published in The Conversation
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