Costa Leads California Delegation in Calling for Education Department to Restore Funding for Minority-Serving Institutions

WASHINGTON - U.S. Representative Jim Costa (CA-21), Rep. Zoe Lofgren (CA-18), Rep. Derek Tran (CA-45), and U.S. Senators Alex Padilla (D-CA) and Adam Schiff (D-CA) led the California Democratic Congressional Delegation in a letter strongly opposing the Department of Education’s decision to rescind $350 million in funding from Minority-Serving Institutions (MSIs). The lawmakers also voiced their disappointment and disagreement with the Department of Justice’s July 25th determination that Hispanic-Serving Institutions (HSIs) apply “racial quotas” in a manner that is “unconstitutional,” especially since no court has found the MSI program unconstitutional or instructed the Department of Education to reprogram this funding. The signatories also warn the Department’s actions would disproportionately harm Californian students and weaken California’s—and America’s—long-term competitiveness.

“To be clear, diverting resources away from these schools will disproportionately harm California students and students across the nation who depend on MSIs as the most accessible and affordable pathway to a degree,” wrote the lawmakers.“It would also weaken proven engines of upward mobility, deprive our workforce of diverse talent, and undercut the nation’s long-term competitiveness.”

“Rather than reallocate scarce dollars from MSIs to HBCUs and TCCUs, we urge you to allocate funding as intended by Congress to support all MSIs, HBCUs, and TCCUs. … Equitable sustained funding across the spectrum of MSIs, HBCUs, and TCCUs will ensure that more institutions can continue broadening opportunity, reducing inequities, and powering the American economy,” continued the lawmakers.“Our collective goal must be to invest in all students, no matter which institution they attend.” 

BACKGROUND   

There are over 800 federally recognized MSIs, including Asian American and Native American Pacific Islander Serving Institutions (AANAPISIs), Alaska Native and Native Hawaiian Serving Institutions (ANNHSIs), Hispanic Serving Institutions (HSIs), Native American Serving Non-Tribal Institutions (NASNTIs), and Predominantly Black Institutions (PBIs). MSIs enroll over five million students, many of whom are first-generation college students. These institutions rely on federal funding to provide vital supports and services for students to help them complete their degree. The Trump Administration’s decision to end funding for MSIs could threaten the institutions’ ability to adequately serve all the students they enroll.  

Earlier this year, Tennessee filed a lawsuit against the Department of Education to challenge the eligibility requirements necessary to receive a federal HSI designation. In July, the Department of Justice decided to not defend the constitutionality of the program in the ongoing litigation. Despite no ruling or court instructions, the Department of Education announcedduring HSI week on September 10th that it would end and reprogram $350 million in discretionary grants for HSIs and other MSIs. On October 10, 2025, the U.S. District Court for the Eastern District of Tennessee allowed the Hispanic Association of Colleges and Universities (HACU) and LatinoJustice Puerto Rican Legal Defense and Education Fund (LatinoJustice PRLDEF) to intervene in the litigation, ensuring affected campuses can help defend the programs. 

California has the largest concentration of MSIs in the country. There are 170+ HSIs and 85 eligible AANAPISIs. In addition, MSIs enroll the majority of first-generation and low-income students in California and consistently demonstrate higher rates of economic mobility than non-MSI institutions. The Department of Education’s decision to reprogram funding from the MSI program undermines the ability of these universities to serve communities that have long been underrepresented in higher education. 

The full text of the letter is available HERE.