Texas Public University Saves Millions of Dollars by Cutting DEI Positions

University administrators have informed state lawmakers that public universities in Texas have cut hundreds of Diversity, Equity, and Inclusion (DEI) positions and freed up tens of millions of dollars. This move was made in response to a new law aimed at dismantling taxpayer-funded DEI offices and projects in higher education institutions.

Since the law took effect on January 1, the University of Texas (UT) System’s 9 academic universities and 6 medical institutions have closed 21 DEI offices, dissolved 311 full-time and part-time positions, and terminated a total of 681 DEI-related contracts, projects, and training sessions.

“Thus far, based on responses from each institution, we estimate savings of over $25 million or reallocation to other mission-related purposes within the university,” said UT System Chancellor James Milliken during the committee hearing on May 14.

Other university leaders also reported that cutting DEI projects’ funding means they have more resources at their disposal. The Texas State University System saved $3 million after canceling DEI projects and positions, while the University of Houston System released approximately $750,000.

Previously known as Senate Bill 17, the law was signed by Republican Governor Greg Abbott in June 2023, prohibiting public colleges and universities from establishing or maintaining DEI offices. The law defines DEI offices as units established for the purposes of influencing an institution’s recruitment or employment practices based on race, gender, color, ethnicity, and conducting training, programs, or activities related to race, color, ethnicity, gender identity, or sexual orientation.

Furthermore, the law prohibits institutions from requiring students or staff to endorse an ideology that treats individuals or groups differentially based on race, color, or ethnicity. It also prohibits considering race, gender, color, or ethnicity in hiring decisions or asking potential employees to declare their commitment to DEI initiatives.

To ensure compliance, UT faculty previously holding DEI administrative roles have had their responsibilities in this area revoked. “These projects have been completely discontinued,” Milliken stated during the hearing.

“Maybe you don’t like this law, but it is the law,” he told Republican State Senator Brandon Creighton, a supporter of SB 17. “We are not looking for workarounds. We are going to fully comply with this law.”

Also speaking at the hearing was Texas A&M University Chancellor John Sharp, who has been critical of DEI. He informed the committee that the Texas A&M System’s 11 universities had a total of 9 DEI offices, all of which have been closed in accordance with SB 17’s requirements.

Due to this system-wide compliance effort, 27 full-time positions were eliminated, with 8 full-time staff being “let go”. Sharp mentioned that resources previously dedicated to DEI projects are now being used for student recruitment.

“For example, at Texas A&M, we are taking the money we have saved and additional funds and putting them into recruitment,” the Chancellor mentioned, “We’re like a football coach, going after the best students who might have been going to Stanford or elsewhere and ensuring they know the great opportunities at Texas A&M.”

Sharp noted that this recruitment strategy to raise awareness of Texas A&M University among high school students outside its traditional reach has proven successful.

“So far, the number of kids applying to Texas A&M has seen double-digit growth,” he said. “The issue is that many kids don’t know about Texas A&M, and many high schools don’t know what courses UT and A&M offer. We’ve really spent a lot of time and effort to strengthen these efforts statewide.”

Senate Bill 17 largely followed party lines, passing through the Republican-dominated Texas legislature, but faced challenges from Democrats at every step towards the governor’s office. While supporters of SB 17 believe that DEI efforts promote unfair treatment based on identity groups, opponents of the law fear it will undermine universities’ goals to create diverse student communities.

Democratic State Senator Royce West from Dallas expressed the need to examine the situation before and after SB 17’s passage to accurately understand the institution’s status. “This will help us document the specific impact of this law.”