In a move that could directly impact Arizona colleges and universities, the U.S. Justice Department has refused to defend the federal grant program for Hispanic-Serving Institutions, which are defined as colleges where at least 25% of undergraduates are Latino.

In a July 25 letter to Congress, Solicitor General D. John Sauer argued the program’s eligibility criteria could be unconstitutional, citing the Supreme Court’s 2023 ruling against race-based admissions and describing “outright racial balancing” as “patently unconstitutional.”

The program provides about $350 million annually nationwide, a pool of funding Arizona institutions such as Arizona State University — where Hispanic enrollment now exceeds 30% — rely on to support student success.

Losing access to these grants would disrupt programs across the state’s colleges and universities. That risk comes even as National Hispanic-Serving Institutions Week begins.

In Arizona, nine of the 10 Maricopa Community Colleges hold the HSI designation, making the system one of the largest drivers of accessible higher education in the state.

“All 10 of our colleges are designated as Hispanic-Serving Institutions,” said Lindsey Wilson, spokesperson for Maricopa Community Colleges. “This designation allows our system to compete for federal grants specific to HSIs.”

That money is used to help Hispanic and many other students in their educational pursuits, Wilson said.

“Each year, grants received through our HSI designation bring meaningful investments to our colleges that help tens of thousands of students thrive, strengthen Arizona’s workforce and ensure the success of future generations,” she said.  “Although we receive funding for these programs through our HSI status, the programs and services made possible through these grants support all student populations.”

Maricopa Community College serves more Arizona residents than any other college or university in the state. Nearly half of those attending are first-generation college students and more than 45,000 receive Pell Grants each year.

Nationwide, HSIs enroll 37% of Pell recipients, reflecting their role in advancing affordability and mobility. Grants awarded through the HSI designation help fund services such as career guidance, embedded tutoring, dual enrollment and equipment upgrades — supports that benefit all students, not just Latino learners.

Migrant education programs are also targeted for elimination in the administration’s 2026 budget. These programs provide stability for the children of agricultural workers — a backbone population in rural Arizona. Without them, districts from Yuma to Cochise risk losing support that keeps transient students engaged.

“Access to affordable, high-quality education changes lives,” said Dr. Steven R. Gonzales, Maricopa Community Colleges chancellor. “Our colleges leverage every resource to broaden academic pathways, deepen student support and prepare learners of every background for good-paying jobs that power Arizona’s economy.”

A broader rollback

Funding rollbacks now span multiple underserved and structurally vulnerable populations. The U.S. Department of Health and Human Services has pulled $122 million in LGBTQ+ and diversity-related health research, while pressuring states to remove gender identity from sex education or face funding cuts.

Federal proposals to dismantle the Department of Education and roll back Title I funding threaten dollars that support Black, rural and disabled students in under-resourced schools.

Even the arts are feeling the squeeze.  The National Endowment for the Arts has stopped funding projects involving DEI or “gender ideology,” stripping support from Latino- and queer-led cultural organizations. 

A path forward

Arizona leaders and advocates are mobilizing around a multipronged strategy to safeguard its educational ecosystem.

The $6.8 billion freeze, which briefly blocked funds for English learners, migrant students and academic enrichment, was reversed after 24 states (including Arizona) took the administration to court. While the restoration of the funds was a relief, education leaders see the legal battle as a warning sign: federal dollars can no longer be considered a guaranteed lifeline for equity programs.

Community partners also are preparing to step in. Nonprofits such as Read On Arizona and the Helios Education Foundation have expressed readiness to provide stopgap funding to preserve access for underserved students.

Within the state, systems like Maricopa Community Colleges are positioning themselves as resilient anchors. Their century-long record of affordable access and their scale as Arizona’s largest provider make them a critical safety net.

Analysts emphasize Arizona must recalibrate its funding architecture — not just patch holes, but reinforce resilience in education. That means weaving together state investment, philanthropic contributions and public-private partnerships to build a decentralized, future-oriented funding ecosystem that protects educational equity, innovation, and workforce development, regardless of federal policy shifts.

“Investment in education is critical,” said Wilson. “It leads to better jobs, supports a thriving economy, and elevates the communities around us. As Arizona’s largest higher education provider, our colleges accept 100% of students who apply, and we remain fully committed to expanding access to education.”

Economic stakes 

When education falters, so does the workforce — and Arizona can’t afford that. Nationally, the economy is projected to generate about 4.3 million annual job openings requiring a bachelor’s degree by 2031—around 23% of all openings. Arizona, with one of the fastest-growing workforces, will likely mirror that trend, though the BLS hasn’t released state-specific projections broken down by degree requirements.

The Helios Education Foundation and Education Forward Arizona point to a “Billions to Gain” potential: boosting educational attainment beyond high school could catalyze the creation of a highly skilled 21st-century workforce, unlock billions in revenue and help resolve budget pressures.

According to the Helios Education Foundation and Education Forward Arizona’s “Billions to Gain” analysis, scaling statewide to fully close the degree gap could generate about $8 billion in cumulative fiscal impact over 10 years, with broader estimates exceeding $4 billion annually in added tax revenue from higher productivity.

Future readiness

By 2032, Arizona will see about 430,000 job openings annually, nearly half as growth-driven positions and the rest replacing retiring workers, according to a recent study from the Center for the Future of Education. Without investment in postsecondary completion, multilingual capacity and innovation, Arizona will lack the human capital to fill these openings.

Assets like the Phoenix Biomedical Campus underscore the broader economic ripple effect. According to a Tripp Umbach–commissioned study, the campus generated an economic impact of approximately $1.3 billion during 2013, supporting more than 9,300 direct and indirect jobs. By 2025, its projected economic impact climbs to $3.1 billion, with employment expected to rise to more than 22,000 jobs — a doubling of its workforce footprint. That kind of economic dynamism relies on sustained investment in research infrastructure and educational pathways — both now under threat.

Editor’s note: A grant from the Arizona Local News Foundation made this story possible. The foundation awarded 15 newsrooms to pay for solutions-focused education reporters for two years. Please submit comments at yourvalley.net/letters or email them to AzOpinions@inusua.org. We are committed to publishing a wide variety of reader opinions, as long as they meet our Civility Guidelines.