There is a growing list of schools that have to worry about cut funding and scholarships that countless students depend upon as a result of President Donald Trump’s changes since he started his second term. Amid the administration’s DEI takedown, schools are being asked to adhere to strict policies regarding things like admissions, research and scholarships. Trump’s policies claim to look out for the greater good while loosening previously instated regulations regarding diversity, equity and inclusion.
Students, faculty and even the Department of Education have been greatly impacted by DEI bans. With the number of schools under investigation for funding cuts, it seems that things may only get more intense in the coming months.
Why Are Schools Facing Funding Cuts?

In accordance with Title VI of the Civil Rights Act of 1964, the Trump administration is buckling down on what they say are “illegal DEI practices.” On Feb. 14, a letter was sent out to schools that ultimately demanded that they sign a certification against DEI and get rid of any related initiatives if they want to continue receiving federal funding. Initially, they announced that schools had 14 days from the date of the letter to fully comply with the anti-DEI policies being explained. Since the initial announcement, they have extended the date to Apr. 24, 2025.
The U.S. Department of Education stated, “In recent years, American educational institutions have discriminated against students on the basis of race, including white and Asian students, many of whom come from disadvantaged backgrounds and low-income families. These institutions’ embrace of pervasive and repugnant race-based preferences and other forms of racial discrimination has emanated throughout every facet of academia.” As a result of this stance, schools are expected to eradicate any semblance of racial consideration, even if (and seemingly, especially if) it is an effort to promote diversity.
Naturally, there has been some pushback. Some schools, such as Harvard University, have even expressed opposition to Trump’s DEI ban, which means that trouble is on the horizon for them.
Why Does This Matter?
With the Trump administration’s newest DEI policies, even large corporations have felt pressure to comply with its executive orders. Now, our colleges are facing the same reality. The very recent federal funding cuts have come off as a forced push to align with the DEI ban when it comes to their language and culture. Pushing diversity and inclusion is now frowned upon, which means that considering the lack of diversity in admissions or any other institutionally affiliated effort to encourage or acknowledge inclusion is not allowed. That is – if universities want federal funding.
Since so many higher learning institutions rely on federal funding, the situation has been at the forefront of many American’s minds. In comparison to K-12 schools (which rely on state and local funding), colleges are especially vulnerable to this type of shakedown. So, with the well-being of universities at stake, some institutions may swap freedom for financial security. While it may be easy to say that going without federal funding should be doable, it is not that simple. To function normally, higher education institutions need billions of dollars each academic year. According to Econofact, just in 2022 alone, the federal government supplied $60 million for higher education scientific research. Without the support of the federal government, the funds available to institutions will dwindle significantly.
HBCUs Are Faced With a Particularly Difficult Decision
Recently, this issue has been particularly relevant to Ivy League schools, where legacy admissions are already a big enough controversy. This practice is when universities admit students who have a familial relationship with an alumnus; it has long occurred historically, but it has since been highlighted as unfair and non-inclusive. So, that paired with the often disappointingly imbalanced diversity statistics at Ivy League institutions already has schools in a chokehold. Efforts to become more inclusive have thrived, but these institutions have seemingly been targeted by the funding cuts.
On top of that, historically Black colleges and universities (HBCUs) are being put in an increasingly difficult position. Since HBCUs strive to provide Black and minority students with an inclusive and supportive environment to learn in, the ban essentially will stifle those efforts. The future of HBCUs seems to be hanging in the balance as funding, student support services and academic freedom are being called into question. In general, scholarships that are a part of diversity and equity efforts have been frozen. So, university students at all levels (and at various schools) are impacted by the funding cuts.
The Trump Administration Is Investigating Over 50 Universities
There are many schools that now have to worry due to the DEI ban and consequential funding cuts. Federal research funding is one of the main concerns for universities at this point. Research excellence is an incredibly important part of higher education. It brings in more students and prestige for universities. Another concern is the loss of federal financial aid, which makes it possible for low-income students to still attend university. With the increasing price of admission to college, these funds are crucial on many levels.
According to the reports of NPR, there are over 50 universities that are under investigation by the Trump administration. Some of the standouts that have funding cuts looming include:
- Columbia University
- University of Pennsylvania
- Cornell
- UCLA
- Yale
- Duke
- Emory
- And more.
Columbia University has already lost $400 million in grants. This happened due to pro-Palestinian campus protests, which the government has labelled as “antisemitic harassment.” These prestigious universities are being targeted for different reasons. Some are being investigated for ”alleged impermissible race-based scholarships and race-based segregation.” Others are under fire for “engaging in race-exclusionary practices in their graduate programs.”
One instance that is making headlines concerns the University of Pennsylvania, which is facing funding suspensions for its inclusive stance on transgender athletes. All in all, it seems that the United States’ education landscape is heading in a new direction. Schools are dealing with a difficult situation to ensure that their institutions continue on, which is sure to change the future of higher education.