The Trump administration’s anti‑DEI campaign is collapsing race‑based scholarship programs with immediate harm to minority students.
At a Glance
- Race-based scholarships declined roughly 25% since March 2023.
- The University of Michigan ended its Lead Scholars program, which supported over 800 minority students.
- McDonald’s Hacer and the Gates Scholarship dropped race/ethnicity criteria.
- Federal officials warned schools that race-conscious aid could trigger funding cuts.
- Civil rights experts warn this may reduce college affordability and completion for minority students.
Scholarship Overhaul and Federal Pressure
The fallout from the Supreme Court’s 2023 decision banning race-conscious college admissions has spread far beyond application processes. In a sweeping expansion of anti-DEI doctrine, the Trump administration’s Education Department issued federal guidance warning universities that race-specific scholarships may cost them federal funds.
The impact has been immediate. According to the National Scholarship Providers Association, scholarships using race, ethnicity, or gender as eligibility criteria fell by roughly 25% between March 2023 and June 2025. Among the casualties: the University of Michigan’s Lead Scholars program, which since 2008 offered $5,000 per year to underrepresented students and cultivated a support network for over 800 recipients. Its elimination reflects rising fears of legal action and federal penalties.
Watch a report: U.S. Education Department Targets DEI Programs
Corporate & Foundation Retreat
Corporate-funded programs are retreating just as fast. McDonald’s axed Hispanic-ancestry requirements from its longstanding Hacer scholarship after activist Edward Blum’s legal group filed suit. The Gates Foundation also stripped racial qualifications from its flagship Gates Scholarship, now awarding funds solely based on Pell Grant eligibility.
These moves aren’t isolated. A DOJ complaint forced Illinois to pause its Diversifying Higher Education Faculty program, a key graduate aid channel for minorities. Similar pressures are hitting Cincinnati’s Black doctor pipeline and public health campaigns nationwide, threatening long-term medical equity by choking the educational supply line.
Consequences of a Rapid Rollback
The replacement of identity-based aid with income-only criteria risks undermining a generation of progress. Decades of research show that minority-focused scholarships improve not just access, but graduation rates and community outcomes. Critics argue that the current legal crusade prioritizes performative “equality” over effective equity—flattening eligibility just as historical barriers reassert themselves.
While proponents claim a shift to “merit-only” aid is neutral, education advocates warn that neutral criteria often replicate existing biases. The loss of tailored programs like Lead Scholars and Hacer doesn’t just reshape budgets—it dissolves ecosystems of mentorship, belonging, and targeted support that statistics alone can’t replace.
This emerging legal and policy assault on DEI-linked aid is more than symbolic. It’s recalibrating the very structure of access, affordability, and representation in U.S. higher education.
