The PELL Act eliminates federal funding programs specifically designed for minority-serving institutions, including historically Black colleges and universities, Hispanic-serving institutions, and other schools serving students of particular racial or ethnic backgrounds. Instead, the bill redirects these resources toward institutions serving Federal Pell Grant recipients—a race-neutral approach intended to expand need-based aid. The legislation repeals or significantly restructures existing programs across multiple federal agencies (including the NSF, Department of Education, and USDA), replaces references to "minority-serving institutions" with language focused on low-income students throughout federal law, and adds new prohibitions preventing any federally-funded institution from considering race or ethnicity in admissions or hiring decisions. Additionally, the bill requires federal agencies to identify and report all existing laws providing minority-institution preferences within one year of enactment. Proponents argue the changes align federal policy with the Supreme Court's 2023 decision restricting race-based college admissions, while opponents contend the measure eliminates targeted support for historically disadvantaged institutions.
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