Race-Conscious University Policies Face Hurdles

A recent federal legal reversal has upended race-conscious aid policies, affecting how colleges can share FAFSA data and support Minority Serving Institutions. Separately, the "PhD Project," an initiative to diversify academia, has lost 20% of its university partnerships and faces a significant budget shortfall due to political backlash. The project is now seeking alternative funding from alumni and foundations.

- The legal challenges to race-conscious policies stem from the Supreme Court's June 2023 decision in *Students for Fair Admissions v. Harvard*, which ruled that considering race in college admissions violates the Equal Protection Clause of the Fourteenth Amendment. - Following the Supreme Court ruling, a February 2025 "Dear Colleague" letter from the Department of Education's Office for Civil Rights expanded this interpretation, declaring all race-conscious programming, including financial aid and scholarships, illegal for institutions receiving federal funds. - As a result of these legal pressures, nearly 50 colleges and universities have discontinued race-conscious scholarships, amounting to at least $60 million in forgone aid for students. - The PhD Project, founded in 1994 to increase the number of minority business professors, has seen 31 universities formally end their partnerships after the Department of Education launched an investigation in March 2025. This investigation alleges that the Project and its partner schools violated Title VI of the Civil Rights Act of 1964 by unlawfully limiting participation based on race. - The political backlash was intensified by conservative strategist Christopher Rufo, whose social media posts drew attention to The PhD Project and prompted the federal investigation. - In response to the federal pressure, The PhD Project has removed race and ethnicity from its application criteria and is now seeking alternative funding from alumni and foundations to address a significant budget shortfall. - Separately, the FAFSA form has been undergoing changes mandated by the FAFSA Simplification Act, which now requires the inclusion of more detailed questions on race and ethnicity to better understand student demographics, though this data is not to be used for aid eligibility. - The Trump administration has also moved to change race-conscious eligibility requirements for the $60 million McNair Postbaccalaureate Achievement Program, which is designed to help underrepresented students pursue doctoral degrees.

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