On September 15, the U.S. Department of Education announced an increase of nearly $495 million in funding for traditional African American high schools and colleges controlled by indigenous tribes. Additionally, $5 billion was allocated for charter schools. The funds are part of a one-time allocation for the 2025 fiscal year and represent a redistribution of funds for projects assessed by the Department of Education as not aligning with the interests of students and families.
According to the Department of Education’s press release, a record $5 billion will be allocated to charter schools in the 2025 fiscal year to support education choice. This marks the largest investment in charter schools in the Department of Education’s history.
The 2025 fiscal year runs from October 1, 2024, to September 30, 2025. Charter schools differ from public schools in that they receive government funding but are privately operated, granting them greater autonomy without some government regulations, providing what some education reformers believe is a more diverse educational choice. Students in charter schools, like those in public schools, attend tuition-free.
The Department of Education decreased funding for programs for gifted and talented students and some specialized programs known as magnet programs, redirecting resources towards history education and civic education.
The increase in education choice, empowering parents, reducing federal intervention in education, strengthening patriotic education, and countering radical leftist ideologies were all promises made by the Trump administration in the education sector. The Department of Education stated that the fund reallocation reflects Trump’s education policy.
Furthermore, the Department of Education increased funding by a total of $495 million for Historically Black Colleges and Universities (HBCUs) and Tribally Controlled Colleges and Universities (TCCUs) to support the unique and historically significant contributions of these higher education institutions.
HBCUs received $435 million in additional funding, boosting their total budget for the 2025 fiscal year to $1.34 billion, nearly doubling from the previous year. TCCUs were allocated over $108 million in total funding.
HBCUs refer to higher education institutions established for African Americans before 1964, in response to racial segregation policies that prohibited African Americans from attending white schools. Many traditional African American colleges later admitted students of other ethnicities, including white students.
On April 23, Trump signed an executive order promoting excellence and innovation in Historically Black Colleges and Universities, mandating that the Department of Education and other agencies make efforts to ensure these institutions receive the federal funding they deserve.
Most HBCUs in the United States are located in southern states, with approximately 107 HBCUs meeting federal funding eligibility criteria as listed by the Department of State.
In a statement on September 15, the Senior Vice President of Public Policy and Government Affairs of the United Negro College Fund (UNCF), Lodriguez V. Murray, expressed that the additional funding was a gift for HBCUs and encouraged private enterprises to view it as a prime opportunity to invest in institutions that are continuously evolving.
The source of the additional funding, according to the Department of Education, came from discontinuing funding for some education institutions advocating for racial quotas.
On September 15, Linda McMahon, the Secretary of Education, stressed the importance of reviewing federal subsidies to ensure taxpayer funds no longer support discriminatory programs advocating for excellence and ability in education projects. This move aimed to substantially enhance educational outcomes and ensure every American has the opportunity to succeed.
Moreover, the Department of Education announced on September 10 the cancellation of $350 million in funding for some minority institutions, primarily Hispanic organizations, due to their projects promoting racial quotas, which were deemed unconstitutional.
The Department of Education clarified that these institutions implemented racial quota programs specifying certain percentages, such as requiring students of particular ethnicities to make up 10%, 20%, or 50% of their enrollment. The withdrawal of funding aimed to end discriminatory programs based on racial quotas.
In a statement on September 10, the Latino Justice Education Fund criticized the Trump administration’s decision, stating that it would harm millions of students. They emphasized the importance of continuing to defend critical programs, ensuring fairness and investment in higher education.
Hispanic Association of Colleges and Universities’ Interim CEO, David Mendez, commented that cutting this funding deprived critical investments in resources for underprivileged and first-generation students, potentially destabilizing colleges in 29 states. He labeled this not just a budget cut but an assault on equity in higher education.
McMahon mentioned that the Department of Education will work with Congress to redesign assistance programs to support and serve institutions lacking resources without resorting to racial quotas.