Federal moves to halt Hispanic‑serving institution (HSI) grant payments have prompted immediate pushback in Congress and alarm across California’s public system. Six Republican members of the Congressional Hispanic Conference urged Education Secretary Linda McMahon to reverse cuts after the department declared programs racially discriminatory. At stake are development and STEM pipeline dollars that the Rutgers Center for Minority Serving Institutions estimates could total a $459 million shortfall across three programs. The California State University system says the Education Department’s decision will cost campuses tens of millions and impair student supports targeted at high‑need Hispanic communities. CSU officials and campus leaders are assessing which programs and cohorts will be affected and are exploring internal reallocations while pursuing federal remedies. Lawmakers and higher‑ed researchers argue HSIs meet eligibility by serving local student demographics—not by “seeking quotas,” a point emphasized in a recent letter to McMahon. Institutions say the cuts will force immediate program reductions or eliminations that affect advising, research capacity, and transfer pathways for underrepresented students.