Tennessee challenged the Department of Education on Wednesday over a program that offers specific funding only to schools composed of at least 25% Hispanic students, arguing that the initiative is unconstitutional.
Joined by the organization Students for Fair Admissions, Tennessee Attorney General Jonathan Skrmetti <a href="https://www.tn.gov/content/dam/tn/attorneygeneral/documents/pr/2025/2025-6-hsi.pdf" target="_blank" rel="noopener">sued</a> the Education Department over its Hispanic-Serving Institution (HSI) program, which gives financial aid to institutions that have at least 25% Hispanic enrollment. In the suit, Skrmetti argues that the racial requirements of the program are arbitrary and violate federal law.
“The Department of Education cannot discriminate based on race or ethnicity — even when Congress orders it to. Yet under the Higher Education Act, the Department awards grants to colleges and universities only if they enroll a certain number of Hispanic students,” the suit says.
The lawsuit took aim at several aspects of the program, including the Developing Hispanic-Serving Institutions grant <a href="https://www.ed.gov/grants-and-programs/grants-special-populations/grants-hispanic-students/developing-hispanic-serving-institutions-program--title-v#:~:text=The%20Developing%20Hispanic%2DServing%20Institutions,program%20quality%2C%20and%20institutional%20stability." target="_blank" rel="noopener">opportunity</a> and the Promoting Postbaccalaureate Opportunities for Hispanic Americans <a href="https://www.ed.gov/grants-and-programs/grants-special-populations/grants-hispanic-students/promoting-postbaccalaureate-opportunities-for-hispanic-americans" target="_blank" rel="noopener">initiative</a>. Both of these programs, Skrmetti argues, violate federal law because of their racial component.
The suit notes that no college in Tennessee qualifies as “Hispanic-Serving” because none have at least 25% Hispanic enrollment, even though some institutions, like the University of Memphis, have a high percentage of minority enrollment.
“The State of Tennessee operates many colleges and universities. Every one of them serves Hispanic students. Every one of them serves low-income students. But not one of them qualifies to receive grants under the HSI program. Why? Because they don’t have the right mix of ethnicities on campus,” the lawsuit says, noting that the 25% number was an &#8220;arbitrary ethnic threshold.&#8221;
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Skrmetti said that the grant program was un-American and unconstitutional, and violated the recent Supreme Court <a href="https://www.dailywire.com/news/supreme-court-issues-landmark-ruling-on-affirmative-action-at-universities">decision</a> to overturn affirmative action in admissions in Students For Fair Admissions v. Harvard.
“Treating people differently because of their skin color and ancestry drags our country backwards. The HSI program perversely deprives even needy Hispanic students of the benefits of this funding if they attend institutions that don’t meet the government’s arbitrary quota,” he said.
The Trump administration has pushed to remove diversity, equity, and inclusion mandates from the federal government and cut grants for organizations that promote racial ideologies. In January, President Donald Trump issued an <a href="https://www.whitehouse.gov/presidential-actions/2025/01/ending-illegal-discrimination-and-restoring-merit-based-opportunity/">executive order</a> directing his administration to ensure that any educational facility receiving federal dollars complied with the Students for Fair Admissions decision. 

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Red State Sues Education Department Over ‘Arbitrary’ Racial Grant Program

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Red State Sues Education Department Over ‘Arbitrary’ Racial Grant Program