Major Changes in Texas Higher Ed Funding - More Than 100 Colleges Lose $64 Million After HSI Grant Cuts

Houston, TX - More than 100 Texas colleges and universities have lost approximately $64 million in federal funding after recent cuts to Hispanic-Serving Institution (HSI) grants, according to new reporting. The loss affects a wide range of public and private institutions that rely on the federal program to support student services, academic development, and workforce-aligned initiatives.

The funding shift represents one of the most significant changes to Texas higher education support in recent years and has raised concerns among institutional leaders about the impact on first-generation, low-income, and Latino student populations.

What the Funding Cuts Mean for Colleges

HSI grants are designed to support colleges where at least 25 percent of the student body identifies as Hispanic. These grants fund tutoring, mentoring, STEM programs, advising services, peer support networks, financial-aid assistance, and workforce preparation.

With the recent cuts, institutions across Texas are now facing shortfalls that may require:

• reducing student support programs
• delaying planned initiatives
• modifying or scaling down academic services
• reallocating internal funds to cover critical gaps

According to the Houston Chronicle, administrators at affected institutions expressed concern that losing HSI funds could set back progress made in improving college completion rates among Hispanic and first-generation students.

Universities Most Affected

The cuts impact both community colleges and four-year institutions, including several in the Houston region. Many of these colleges serve large Hispanic populations and rely heavily on federal grants to fund academic support resources.

Institutions that previously received substantial annual HSI allocations are now reassessing how to maintain services such as:

• student tutoring centers
• supplemental instruction
• career and transfer advising
• faculty development for serving diverse populations

While some institutions may absorb part of the loss through internal funding, many smaller colleges will need to scale back services unless they identify alternative grant opportunities.

Why the Cuts Happened

The reduction stems from changes in how federal funds were distributed among Hispanic-Serving Institutions nationwide. The shift affected eligibility, allocation formulas, and the number of institutions qualifying for support. In Texas - which has one of the largest HSI populations in the country - the adjustments led to a significant decrease in overall funding.

National higher-education groups have noted that as more colleges across the country meet HSI criteria, existing federal funds must be spread across a larger pool of institutions, contributing to lower award amounts for some programs.

Potential Impact on Students

The loss of HSI funding may have several consequences for students enrolled at affected colleges:

• fewer academic support services
• reduced access to financial-aid advising and retention programs
• decreased availability of mentoring and peer-support networks
• potential delays in program development or expansion

For many institutions, HSI grants have played a critical role in supporting students who face barriers related to income, college preparation, or family responsibilities.

What Happens Next

Texas colleges are now evaluating alternative funding pathways and adjusting budgets as they assess the long-term effects of the cuts. Key developments to watch include:

• whether institutions pursue emergency state or federal funds
• how colleges redistribute internal resources to support vulnerable students
• potential advocacy efforts by higher-education organizations
• whether similar funding reductions occur in future federal budget cycles

As institutions navigate these changes, the funding cuts may reshape how colleges serving large Hispanic populations approach student success and resource allocation in the years ahead.