The Department of Justice’s Office of Legal Counsel concluded this month that several long‑running Education Department grants tied to minority‑serving institutions (MSIs) are unconstitutional because they use racial eligibility criteria. The memo named programs for Hispanic‑serving, Alaska Native/Native Hawaiian‑serving and Native American‑serving institutions and suggested funds could be repurposed under race‑neutral rules. Education Secretary Linda McMahon praised the opinion and said the department will redirect some funding; the Education Department had already canceled discretionary MSI grants earlier in the year. Higher education leaders warn the ruling could redraw federal support for institutions serving large shares of underrepresented students and force rapid redesign of program eligibility and compliance systems.