A significant legal challenge targeting the federal funding structure for Hispanic-Serving Institutions (HSIs) is causing considerable unease among colleges and universities across California. The lawsuit, which questions the very constitutionality of the funding model, names the U.S. Department of Education and U.S. Secretary of Education Linda McMahon as defendants.
At the heart of the legal action is a contention by conservative activist Edward Blum, who serves as the president of Students for Fair Admissions. Blum argues that the requirement for institutions to meet a specific Latino enrollment threshold to qualify for the HSI designation is illegal, asserting that this criterion violates constitutional principles.
Understanding the Role of Hispanic-Serving Institutions
Hispanic-Serving Institutions play a crucial role in the national higher education landscape, particularly in states with large Latino populations like California. The federal HSI designation is conferred upon non-profit institutions of higher education where Hispanic students constitute at least 25 percent of the full-time equivalent undergraduate enrollment.
Achieving this designation opens access to vital federal grants under Title V of the Higher Education Act, which are intended to help these institutions expand educational opportunities for, and improve the attainment of, Hispanic students. The funding supports a range of initiatives, including student support services, faculty development, curriculum enhancement, and infrastructure improvements. For many colleges, particularly those serving historically underserved communities, these federal grants are indispensable for providing necessary resources and support systems that contribute significantly to student success and institutional capacity building.
The Basis of the Legal Challenge
The lawsuit brought by Edward Blum follows a pattern of legal challenges initiated by Students for Fair Admissions against admissions practices and policies that consider race or ethnicity. While previous cases have focused primarily on affirmative action in admissions, this lawsuit targets the criteria used for institutional designation and subsequent access to federal funding.
Blum’s argument hinges on the principle that requiring a specific ethnic enrollment percentage to access federal benefits constitutes a form of discrimination. By naming the U.S. Department of Education and Secretary Linda McMahon as defendants, the lawsuit directly challenges the federal government’s administration and allocation of these significant HSI funds. The legal proceedings are currently moving through the court system, and their outcome could have profound implications for how federal education funding is distributed and for institutions that rely on the HSI designation.
Impact Felt Across California
California is home to a large number of HSIs, serving hundreds of thousands of students annually. The prospect of challenges to the funding that supports these institutions has naturally led to concern.
California State University, Los Angeles (Cal State L.A.) is one such institution mentioned as being among California’s designated HSIs. Institutions like Cal State L.A. leverage HSI funding to provide targeted support services that address the unique needs of their diverse student bodies, many of whom are first-generation college students or come from low-income backgrounds.
Another California HSI feeling the weight of this legal challenge is Cal State Channel Islands. Provost Jessica Lavariega Monforti recently commented on the significance of the HSI designation during the university’s 2025 Sí Se Pudo Recognition Ceremony. Monforti stated that the HSI designation has likely aided in recruiting Latino students, underscoring the tangible benefits the status provides in attracting and serving a key demographic.
For California colleges, the uncertainty surrounding the lawsuit creates challenges for long-term planning, potentially impacting their ability to confidently pursue initiatives reliant on future HSI grant cycles.
Outlook on Funding and Federal Response
Despite the ongoing legal challenge, the process for accessing HSI funding appears, for now, to be proceeding. Grant applications for HSI funding are expected to continue this year as the lawsuit makes its way through the courts. Furthermore, institutions that have already received HSI funds but have not yet spent them are permitted to continue using them, providing a degree of continuity for current programs.
However, the federal government has offered little public clarity on its stance regarding the lawsuit. The Department of Education did not respond to a request for comment regarding the litigation, leaving institutions and stakeholders to navigate the uncertainty without direct guidance from the agency responsible for administering the funds.
Conclusion: An Uncertain Future
The lawsuit initiated by Edward Blum and Students for Fair Admissions introduces significant legal and financial uncertainty for Hispanic-Serving Institutions nationwide, with a particularly sharp focus in states like California where these institutions are vital to the educational ecosystem. The challenge to the fundamental criteria used for HSI designation raises complex questions about the future of federal support for institutions dedicated to serving Latino students.
As the case progresses through the court system, California colleges, like their counterparts across the country, will be closely watching the proceedings. The outcome holds the potential to reshape the landscape of federal higher education funding and impact the resources available to support Latino student success for years to come.
