Public Universities Face Setback as $350 Million in Equity Grants Cancelled

Western Oregon University Denied HSI Funding Amid National Policy Shift

Western Oregon University (WOU) is a medium-sized public university founded in 1856 and is ranked among the oldest institutions of higher education in the state. Earlier this year, the university was named the first Hispanic-serving institution in the state of Oregon among public universities and is hereby regarded by the law of federal funding to improve student services and achievement. This designation requires that Hispanic or Latino student enrollment be no less than 25%, and it usually opens avenues for scholarships and aid available to that specific college. The university, however, learned not long ago that it would not receive that kind of federal funding due to an unexpected decision by the Department of Education to retract all of the 2025 grants designated for the minority servicing institutions of higher education.

Because of the recently bestowed designation, Western Oregon University has not been able to receive any HSI-related grants, said Maureen Brakke, Western's spokesperson. Such funding would typically make use of improving retention and graduation rates, particularly for first-generation students, who make up more than half of Western's student population. Brakke pointed out that this pull-out from HSI programs would in no way satisfy the university's commitment toward providing high-quality student services or creating a diverse and inclusive learning environment.

The federal ruling, which will influence around $350 million of grant funding, will influence public state colleges and universities with large numbers of Alaska Native, Native Hawaiian, Black, Asian American, Pacific Islander, Native American, and Hispanic students. The action has raised alarm among US universities, especially those that depend on such grants to finance equity-pursuing initiatives.

A 2024 State Higher Education Executive Officers Association report featured the fact that institutions that serve minorities have consistently served as engines of upward mobility, assisting lower-income students in achieving academic and career success at a higher rate than their counterparts. Portland State University, which previously was an Asian American and Pacific Islander-Serving Institution, was also impacted. University spokesperson Katy Swordfisk confirmed that the university had been anticipating the remaining balance of a $1.9 million grant to be released over several years. The cancellation has caused long-term planning for programs already in process to be interrupted.

Betty Izumi, who manages projects for the grant, said the funds had allowed the university to employ a scholar of Pacific Islander studies and introduce a support programme for first-generation Pacific Islander students. She said the university was investigating other sources of funding to prevent disruptions to vital student services. Izumi mentioned that these efforts had empowered students and had a beneficial impact on the broader campus community, emphasising the university's mission to promote equal opportunities through higher education and community involvement. Though Oregon State University was not specifically named in the funding cuts, the implications for educational institutions throughout the state are far-reaching. The move has reignited the debate in student unions and policy forums regarding the need for federal support as a means of encouraging diversity and inclusion across public universities.

Editor’s Note:

Western Oregon University’s recent designation as a Hispanic-Serving Institution should have marked a progressive step in its commitment to diversity and student support. Instead, the federal government’s decision to cancel 2025 grants for minority-serving institutions has denied the university access to funding that could have enhanced services for its largely first-generation student body. The move undermines the purpose of such designations, which are meant to unlock resources for equity-focused initiatives. Portland State University, which had been receiving a $1.9 million grant to support Pacific Islander and Asian American students, now faces disruption to programmes that were already delivering measurable benefits. University leaders are seeking alternative funding to avoid setbacks, but the loss of federal support has clearly stalled momentum. This decision affects approximately $350 million in grants across public colleges and universities serving underrepresented groups. It contradicts findings from the State Higher Education Executive Officers Association, which highlighted the role of minority-serving institutions as drivers of upward mobility for low-income students. Removing financial backing from these institutions risks widening existing gaps in access and achievement.

Skoobuzz highlights that if higher education is to remain a way for inclusion and opportunity, then reconnection must be matched by resources.

FAQs

1. What is higher education in the US? 
Higher education in the United States refers to learning that takes place after secondary school. It includes colleges, universities, and technical institutes where students can earn degrees such as associate, bachelor’s, master’s, or doctoral qualifications. The system is known for its flexibility, wide range of subjects, and a mix of public and private institutions. Students often choose courses based on career goals, and many universities offer both academic and practical training.

2. How do public universities get funding? 
Public universities in the US receive funding from several sources. The main support comes from state governments, which provide money for operations and infrastructure. They also earn income from student tuition fees, research grants, and donations. Some funding comes from the federal government, especially for research projects and programmes that support underrepresented students. Budget cuts or changes in policy can affect how much money these universities receive each year.

3. Why are scholarships important for college students? 
Scholarships help students pay for their education without taking on large debts. They are especially important for those from low-income families or first-generation college students. Scholarships can cover tuition fees, books, housing, and other costs. They also reward academic achievement, leadership, or talent in areas like sports or the arts. For many students, receiving a scholarship makes higher education possible when it might otherwise be out of reach.

4. What is Oregon State University known for? 
Oregon State University is known for its strong research programmes, especially in science, engineering, agriculture, and environmental studies. It is a public university located in Corvallis, Oregon, and has a reputation for innovation and sustainability. The university also supports a diverse student body and offers a wide range of undergraduate and postgraduate courses. Its work in marine science and forestry is recognised nationally and internationally.

5. How do grant cuts affect students? 
When grants are cut, students often lose access to important support services such as tutoring, mentoring, and financial aid. Programs that help first-generation or minority students may be reduced or stopped altogether. This can lead to lower retention and graduation rates, especially for those who rely on extra help to succeed. Grant cuts also affect the university’s ability to hire staff, develop new courses, and maintain a welcoming learning environment.