ED Gives Institutions Two Weeks to Comply with New Nondiscrimination Obligations or Risk Losing Federal Funding
February 18, 2025
Hugh T. Ferguson and Megan Walter
The Trump Administration, in a Dear Colleague letter sent over the weekend, has signaled its intent to withhold federal funding from institutions that it determines “have discriminated against students on the basis of race.”
The announcement underscores the potential consequences for students who rely on financial aid to access and afford higher education. The announcement, issued by the Department of Education’s (ED) Civil Rights Office comes on the heels of the 2023 Supreme Court ruling, which effectively ended affirmative race-conscious admission practices at colleges and universities. The ruling prompted institutions to reassess their diversity efforts and explore alternative methods to maintain inclusive campuses.
“When the Supreme Court ruled in 2023 on the use of race in college admissions, NASFAA reaffirmed its commitment to helping our member institutions fully uphold their missions and values while remaining in full compliance with the law. That commitment remains unchanged, “said Beth Maglione, NASFAA’s interim president and CEO. “We are actively working with policymakers, colleges, and our peers in the higher education community to understand how the Trump administration’s new interpretation of the SCOTUS ruling may impact student financial aid. Since the ruling, legal experts have debated whether it can be interpreted to apply to financial aid and scholarships, with no clear resolution; we expect that debate to continue.”
