The Justice Department’s Office of Legal Counsel has concluded that several longstanding Education Department grant programs that use racial or ethnicity-based eligibility — including grants for Hispanic-serving, Alaska Native/Native Hawaiian-serving, and Native American-serving institutions — are unconstitutional. The memo recommends repurposing or redesigning some funds under race-neutral criteria, while identifying a subset that might continue if retooled. The OLC opinion follows the Education Department’s own cancellations and shifts in MSI funding priorities earlier in the year and aligns with the administration’s broader enforcement posture on race-conscious policies. Education Secretary Linda McMahon publicly supported the memo, framing it as a step to remove race-based conditions from taxpayer funding. Colleges and system leaders that rely on MSI grant streams face immediate compliance and financial-planning risks. Institutions designated as HSIs, tribal-serving, and other MSIs use those discretionary grants for STEM pipelines, teacher preparation, student services and capacity building — programs now facing legal uncertainty or redesign. The decision will likely trigger rapid grant reauthorizations, reallocations, and additional litigation as affected institutions and advocates push back.