The Department of Justice issued an opinion concluding that multiple Education Department grant programs with explicit racial criteria—such as Hispanic‑serving and Native‑serving institution grants—are unconstitutional as presently structured. The memo advised the Education Department it may need to repurpose funds or redesign programs under race‑neutral criteria. Secretary Linda McMahon praised the DOJ guidance and framed it as a step to end “race‑based conditions” on taxpayer funding. The memo follows earlier department actions to curtail discretionary MSI grant lines and suggests more aggressive legal and policy shifts ahead. If implemented, the DOJ position could force major funding reallocations affecting minority‑serving institutions, STEM pipelines and community programs; colleges and state education agencies should evaluate contingency plans and monitor rulemaking that could redefine eligibility and compliance for longstanding federal support streams.