President Trump’s fiscal year 2027 budget proposal would significantly cut or eliminate multiple federal education programs, including funds for Minority-Serving Institutions. The plan would effectively change how MSI designations are funded after the U.S. Department of Justice ruled in December 2025 that quota-based MSI designations were unconstitutional. Under the budget outline, the administration proposes $354 million in reductions for Minority-Serving Institutions programs and targets the Fund for the Improvement of Postsecondary Education (FIPSE) and other education areas for large decreases. The proposal also seeks to apply Pell Grants to short-term workforce credentials while introducing a Workforce Pell expansion. The budget also includes major research cuts. It proposes reducing $5 billion at the National Institutes of Health and specifically targets multiple institutes and centers, including the National Institute on Minority Health and Health Disparities and the Fogarty International Center—moves that could reshape federal research pipelines and capacity in higher education.