The Problem

The U.S. President has issued an executive order and directive to pause all spending on federal grants, loans, and financial assistance programs pending a review under recently signed executive orders. While an injunction has been filed with the federal courts and spending has resumed, there is grave concern that funding will be cut/decreased. The fight to ensure HBCUs are fully funded is now!  This action raises serious concerns for Historically Black Colleges and Universities (HBCUs), which rely on federal funding for student success initiatives, institutional capacity building, and economic sustainability.

Programs Most Affected

The funding pause is expected to impact several key programs that directly benefit HBCUs, including:

-Title III, Part A & B (Strengthening HBCUs & Strengthening Institutions Programs) – Provides infrastructure support, faculty development, and student services to enhance institutional capacity.

-TRIO and GEAR UP – Offers academic preparation, mentoring, and college access for first-generation and low-income students.

-Pell Grant Campus-Based Programs (SEOG & Federal Work-Study) – While direct Pell Grants are exempt, supplemental grants and work-study opportunities may be at risk, affecting student affordability and retention.

-Carl D. Perkins Career and Technical Education (CTE) Grants – Supports vocational training and workforce development for students entering high-demand industries.

-Community Project Funding/Congressionally Directed Spending (“Earmarks”) – Direct federal investments in HBCU programs and facilities could face delays or cancellations.

-Postsecondary Student Success Grants & Strengthening Community Colleges Training Grants – Targets college persistence and workforce training for underserved students.

 

Potential Impact on HBCUs

The freeze on these funding sources could result in:

-Decreased Student Enrollment and Retention – HBCUs disproportionately serve low-income, first-generation, and minority students, many of whom rely on TRIO, GEAR UP, and work-study programs for financial and academic support. Without these resources, student retention and graduation rates may decline.

-Disruptions to Institutional Stability – Title III funding supports faculty hiring, academic program expansion, and campus infrastructure improvements. A pause in funding could lead to staff layoffs, halted projects, and reduced institutional growth.

-Limited Workforce Readiness and Career Pathways – Perkins CTE and training grants enable students to gain industry-recognized credentials and participate in internships. A suspension of funds could weaken HBCU workforce pipelines, reducing career placement rates.

-Reduced Economic Contributions – HBCUs contribute over $14.8 billion annually to the U.S. economy and support over 134,000 jobs (United Negro College Fund, 2017). Funding instability threatens these economic benefits in predominantly Black communities.

-Equity and DEI Program Challenges – The rollback of DEI-related grants further limits opportunities for underrepresented students and faculty, exacerbating disparities in higher education.