Race-Based Scholarships Are Shrinking — Here's What's Replacing Them
Diversity-tagged scholarships have fallen from 12% to 8% of a 33,000-scholarship database since 2023 — and legal pressure from the Trump administration and advocacy groups means more cuts are likely on the way.
The share of scholarships with diversity-related eligibility criteria has dropped from 12% to 8% of the National Scholarship Providers Association's 33,000-scholarship database since 2023, and the pace is accelerating. The Iowa Supreme Court ruled this month that the University of Iowa can't repurpose a private scholarship designated for Black chemistry students — but may not be able to award it as originally intended either, leaving the funds in legal limbo. The Trump administration has declared race-based scholarships 'unlawful practices,' and advocacy groups like the American Alliance for Equal Rights have filed lawsuits against the Hispanic Scholarship Fund and the Congressional Black Caucus Foundation. Schools like the University of Alabama have already replaced race-specific awards with race-neutral alternatives — so if you currently hold or are applying for a minority-designated scholarship, check with your provider now to confirm its status and eligibility criteria haven't changed.
This issue draws on reporting and data from Inside Higher Ed.