Trump’s budget cuts put minority students at risk: Here is why community colleges are losing millions in funding

Community colleges across the United States are facing mounting financial pressures following federal budget decisions under President Trump in 2025. According to The Washington Post and Los Angeles Times, the administration has slashed millions in grants aimed at Hispanic-Serving Institutions (HSIs) and other Minority-Serving Institutions (MSIs).

These programs have traditionally played a vital role in supporting first-generation, immigrant, and underrepresented students through tutoring, STEM programs, dual-enrollment partnerships, and academic counselling.For two-year colleges that often operate on tight budgets, these funding cuts go beyond numbers. They endanger programs and services that directly impact students’ educational paths and opportunities.

Federal grants targeted

The Los Angeles Times reports that $350 million in federal grants previously allocated to HSIs and MSIs have been eliminated nationwide. These funds supported initiatives ranging from academic counseling to STEM programs and dual-enrollment partnerships. In California, nearly 100 of the state’s 116 community colleges had benefited from these programs prior to the cuts.The administration redirected funding toward other types of institutions, including historically underfunded colleges, signalling a shift in federal priorities and the way grants are distributed.

Impact on California colleges

The consequences of the cuts are tangible at the state level. In California alone, community colleges are losing roughly $20 million in federal support. Some districts have used reserve funds to temporarily offset the shortfall, but many colleges do not have sufficient financial cushions to weather the reductions.Several programs are now at risk, including STEM initiatives at College of the Canyons, dual-enrollment and tutoring services at Reedley College, and Guided Pathways projects at Las Positas College.

Administrators are actively seeking alternative funding sources to maintain these programs, but uncertainty remains for the upcoming academic years.

National repercussions

Across the country, community colleges report similar challenges. The Washington Post notes that these cutbacks are part of a broader realignment of federal education spending. Discretionary grants for low-income and minority-serving campuses have been reduced, funding priorities have shifted toward workforce training linked to private-sector partnerships, and certain education research grants considered “non-essential” have been frozen or rescinded.Many colleges are now facing difficult choices in how to allocate limited resources, with potential impacts on staffing, student services, and program continuity. The cuts could lead to a long-term reshaping of the services available to students at two-year institutions.

Searching for alternatives

In response to the funding reductions, several states are exploring local grant programs or emergency support measures to offset federal losses.

Colleges are prioritising key student-support services such as tutoring, mentoring, and career guidance to ensure continuity for students who rely heavily on these programs.Without effective alternatives, these federal funding cuts threaten to disrupt the educational experience for thousands of students at two-year colleges, particularly those from Latino, immigrant, and first-generation backgrounds. The situation underscores the vulnerability of minority-serving institutions that depend on federal support to maintain programs critical to student success.