US Education Department announces $1.15 billion investment in charter schools and minority-serving colleges
The US Department of Education has announced sweeping new investments aimed at reshaping the nation’s education priorities. The funding, totalling more than $1.15 billion, will support charter schools, Historically Black Colleges and Universities (HBCUs), Tribally Controlled Colleges and Universities (TCCUs), and American history and civics programs.
According to the Department, the money will be repurposed from programs deemed “ineffective and discriminatory,” with the goal of advancing President Donald Trump’s education agenda and improving educational outcomes nationwide.
Largest-ever charter school investmentThe centrepiece of the announcement is a $500 million investment in the federal Charter Schools Program for fiscal year 2025. Officials said this is the largest single allocation in the program’s history, designed to expand school choice options for families.
The decision follows the release of the 2024 National Assessment of Educational Progress (NAEP) scores, which showed sharp declines in student performance across the country. “This investment fulfills a commitment made earlier this year and represents a significant step in addressing the nation’s educational crisis,” the Department said in its statement.
Major boost for HBCUs and TCCUsIn a move described as both historic and symbolic, the Department also announced a one-time boost of $495 million for HBCUs and TCCUs.
Preparing for America’s 250th anniversaryThe Department also committed over $160 million to American history and civics education programs as part of the lead-up to America’s Semiquincentennial in 2026.
Earlier this year, it launched a competition under the American History and Civics Education National Activities – Seminars for America's Semiquincentennial program, which drew more than 100 applications from civil society organizations and universities. Officials said this round of funding will result in a record number of awards aimed at strengthening civic knowledge and engagement among students.
Secretary McMahon ’s statementEducation Secretary Linda McMahon underscored the administration’s view that federal education spending must be tied to merit and results.
“Today, the Department is making three massive investments – redirecting financial support away from ineffective and discriminatory programs toward those which support student success,” McMahon said.
“We are proud to make the largest investment in the Charter Schools Grants Program in the Department’s history, support American history programs that will inspire young people to be active and informed citizens, and recognise HBCUs’ and TCCUs’ historic contributions to improving education and opportunity in our country.”
She added that the Department had “carefully scrutinised federal grants to ensure taxpayers are not funding racially discriminatory programs but those which promote merit and excellence.”
Context and implicationsThe announcement reflects a broader shift under the Trump administration toward school choice, civic education, and support for minority-serving institutions, while cutting or redirecting funds from other federal education initiatives.
Education analysts say the move will likely spark debate. Supporters argue that charter schools and civics education represent effective tools for improving outcomes and strengthening democracy. Critics, however, may raise concerns about reduced funding for traditional public schools and the framing of existing programs as “ineffective or discriminatory.”
As the Department moves forward with grant competitions and allocations, the coming months will reveal how these investments reshape the U.S. education landscape in the lead-up to the country’s 250th anniversary.
According to the Department, the money will be repurposed from programs deemed “ineffective and discriminatory,” with the goal of advancing President Donald Trump’s education agenda and improving educational outcomes nationwide.
Largest-ever charter school investmentThe centrepiece of the announcement is a $500 million investment in the federal Charter Schools Program for fiscal year 2025. Officials said this is the largest single allocation in the program’s history, designed to expand school choice options for families.
The decision follows the release of the 2024 National Assessment of Educational Progress (NAEP) scores, which showed sharp declines in student performance across the country. “This investment fulfills a commitment made earlier this year and represents a significant step in addressing the nation’s educational crisis,” the Department said in its statement.
- HBCUs will receive more than $1.34 billion in FY 2025, representing a 48.4% increase over prior funding.
- TCCUs will receive over $108 million, marking a 109.3% increase from previous allocations.
Preparing for America’s 250th anniversaryThe Department also committed over $160 million to American history and civics education programs as part of the lead-up to America’s Semiquincentennial in 2026.
Earlier this year, it launched a competition under the American History and Civics Education National Activities – Seminars for America's Semiquincentennial program, which drew more than 100 applications from civil society organizations and universities. Officials said this round of funding will result in a record number of awards aimed at strengthening civic knowledge and engagement among students.
“Today, the Department is making three massive investments – redirecting financial support away from ineffective and discriminatory programs toward those which support student success,” McMahon said.
“We are proud to make the largest investment in the Charter Schools Grants Program in the Department’s history, support American history programs that will inspire young people to be active and informed citizens, and recognise HBCUs’ and TCCUs’ historic contributions to improving education and opportunity in our country.”
She added that the Department had “carefully scrutinised federal grants to ensure taxpayers are not funding racially discriminatory programs but those which promote merit and excellence.”
Education analysts say the move will likely spark debate. Supporters argue that charter schools and civics education represent effective tools for improving outcomes and strengthening democracy. Critics, however, may raise concerns about reduced funding for traditional public schools and the framing of existing programs as “ineffective or discriminatory.”
As the Department moves forward with grant competitions and allocations, the coming months will reveal how these investments reshape the U.S. education landscape in the lead-up to the country’s 250th anniversary.
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