Education Department Announces $1.16 Billion in New Funding Amid Controversial MSI Grant Cuts

The U.S. Department of Education announced Monday a mEducation Secretary Linda McMahonassive $1.16 billion investment in charter schools, American history and civics programs, and select minority-serving institutions, even as the Trump administration faces mounting criticism for cutting $350 million in funding to other minority-serving institution programs just days earlier.

The new funding package includes $500 million for charter schools—the largest investment ever in the Charter Schools Program—alongside $495 million for Historically Black Colleges and Universities (HBCUs) and Tribally Controlled Colleges and Universities (TCCUs), and more than $160 million for American history and civics education programs.

"Today, the Department is making three massive investments—redirecting financial support away from ineffective and discriminatory programs toward those which support student success," said Education Secretary Linda McMahon in a statement announcing the funding.

The investments come days after the department announced it would end discretionary grant funding to several minority-serving institution programs, including Hispanic-Serving Institutions, Predominantly Black Institutions, and Asian American and Native American Pacific Islander-Serving Institutions. That decision, which affects approximately $350 million in fiscal year 2025 funding, has drawn fierce criticism from college leaders and Democratic lawmakers who argue it will harm students at institutions serving large populations of underrepresented minorities.

The timing of the announcements has raised questions about the administration's approach to educational equity. While HBCUs and TCCUs are receiving significant increases—48.4% and 109.3% respectively—other minority-serving institutions are losing critical federal support that advocates say has helped narrow educational disparities.

McMahon defended the department's approach, saying the administration "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 cuts to MSI programs stem from the administration's view that institutions requiring certain percentages of minority students to qualify for grants violate equal protection principles. For example, Hispanic-Serving Institutions must enroll at least 25% Hispanic students to qualify for federal designation and related grants.