Efforts to Preserve $350 Million for Hispanic Serving Institutions

Diverse students participating in academic activities at a university campus.

San Antonio, TX, October 13, 2025

News Summary

U.S. Rep. Tony Gonzales is taking action to safeguard $350 million in grant funding for Hispanic Serving Institutions (HSIs) after the Department of Education proposed withdrawing it. Joined by other Congressional Hispanic Caucus members, Gonzales argues that maintaining this funding is essential for workforce development and educational programs that benefit diverse student populations. This funding is critical not only for Hispanic students but for all students attending HSIs, which play a vital role in the economy and job preparation across various fields.

San Antonio — U.S. Rep. Tony Gonzales, R-San Antonio, is leading an effort to preserve $350 million in grant funding for Hispanic Serving Institutions (HSIs) after the U.S. Department of Education moved to withdraw the money. Gonzales, in his capacity as chair of the Republican Congressional Hispanic Caucus, sent a letter to the Education Department opposing the withdrawal and was joined by five other members of the Congressional Hispanic Caucus. The move follows a separate appeal by House Democrats in September urging the Trump administration to maintain support for HSIs.

Key developments

The most immediate element of the dispute is the proposed reprogramming or withdrawal of $350 million originally designated for HSI grant programs. Lawmakers who oppose the change, including Gonzales and five colleagues, said redirecting the funds would undermine investments in workforce development, research, and programs that support student success across multiple fields.

HSIs are defined as colleges and universities where at least 25% of full-time students are Hispanic, as per the Higher Education Act. This federal definition guides eligibility for the targeted grants at the center of the current debate.

Why the funding matters

Lawmakers and university leaders argue that the HSI grants support key programs in STEM, teacher preparation, AI research, and advanced manufacturing, and that those programs strengthen the nation’s talent pipeline. Programs supported by HSI funding play essential roles in STEM fields, teacher preparation, and advancing research in AI and advanced manufacturing. Officials also said that redirecting the funds would adversely affect students of all ethnicities at HSI-designated institutions, not only Hispanic students.

HSIs enroll approximately 5.6 million students and contribute billions to the economy each year. Across the nation, the concentration of HSIs and the students they serve are frequently cited as critical to local and regional workforce pipelines and research capacity.

State-level impact: Texas

Texas is home to the second-largest number of HSIs in the U.S., a fact that lawmakers and university officials say makes the state particularly vulnerable to the proposed cuts. The situation is of particular consequence to the University of Texas at El Paso, where university leadership has emphasized that cutting funding threatens the university’s offerings and its commitment to serving diverse populations.

Political context and cross-party responses

Gonzales’ letter follows a previous appeal by House Democrats, including U.S. Rep. Veronica Escobar, D-El Paso, who raised concerns in September about the Trump administration’s stance on minority-serving institution funding. Escobar and multiple congressional Democrats made a similar plea in September to the Trump administration regarding HSI funding. Escobar also noted that despite multiple efforts, she had not collaborated with Gonzales or the Republican Hispanic Caucus regarding the funding issue and criticized the administration for actions she characterized as attacks on diversity and inclusion.

Republican and Democratic lawmakers from Texas and elsewhere have highlighted potential political and economic consequences if the funding is reprogrammed. Local university officials pointed out that the money supports enhanced student learning experiences and career readiness programs spanning entire student bodies.

What proponents say will be lost

Supporters of preserving the grant funding contend that reprogramming the $350 million would undermine critical investments in workforce development and research, damaging both local economies and national competitiveness. They also argue that HSI eligibility is based on institutional mission and community service, not on quota-driven definitions. The eligibility of universities as HSIs is a result of their mission to serve their communities, not merely for quota purposes.

Next steps

The dispute is expected to continue as lawmakers press the Department of Education for clarity and reversal of the reprogramming decision. Both formal correspondence to the agency and public statements from elected officials and university presidents have framed the issue as one with significant educational and economic stakes for affected campuses and regions.

Frequently Asked Questions

What is the amount of funding at issue?

The amount of funding at issue is $350 million.

Who led the effort to preserve the funding?

U.S. Rep. Tony Gonzales, R-San Antonio, as chair of the Republican Congressional Hispanic Caucus, sent a letter to the U.S. Department of Education opposing the withdrawal of $350 million in HSI grant funding.

How are HSIs defined?

HSIs are defined as colleges and universities where at least 25% of full-time students are Hispanic, as per the Higher Education Act.

How many students attend HSIs and what is their economic impact?

HSIs enroll approximately 5.6 million students and contribute billions to the economy each year.

Which state has the second-largest number of HSIs?

Texas is home to the second-largest number of HSIs in the U.S., particularly affecting the University of Texas at El Paso.

What could be affected if the funding is reprogrammed?

Reprogramming the $350 million would undermine critical investments in workforce development and research and could adversely affect students of all ethnicities at HSI-designated institutions.

What is the basis for HSI eligibility?

The eligibility of universities as HSIs is a result of their mission to serve their communities, not merely for quota purposes.

Key features

Feature Detail Scope
Funding amount $350 million Federal
HSI definition HSIs are defined as colleges and universities where at least 25% of full-time students are Hispanic, as per the Higher Education Act. Federal
Enrollment HSIs enroll approximately 5.6 million students and contribute billions to the economy each year. Nationwide
State impact Texas is home to the second-largest number of HSIs in the U.S., particularly affecting the University of Texas at El Paso. State-level (Texas)
Lead lawmaker U.S. Rep. Tony Gonzales, R-San Antonio; chair of the Republican Congressional Hispanic Caucus Federal (Congress)

Timeline

Date/Time Event Status/Source
September House Democrats, including U.S. Rep. Veronica Escobar, D-El Paso, made a plea to the Trump administration regarding HSI funding. Made (House Democrats)
Recent U.S. Rep. Tony Gonzales sent a letter to the U.S. Department of Education opposing the withdrawal of $350 million in HSI grant funding; joined by five other Congressional Hispanic Caucus members. Sent (Republican Congressional Hispanic Caucus)
Following Gonzales’ letter follows a previous appeal by House Democrats, including Escobar, who expressed concerns over the administration’s stance on minority-serving institutions. Ongoing (Congressional correspondence)

Simple visual statistics

HSI enrollment (Nationwide): 5.6 million

Represents total HSI enrollment nationwide.
Funding targeted for reprogramming: $350 million

Represents the grant amount at issue in the Education Department decision.

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