Education Dept THREATENS Funding Over DEI Rules

The U.S. Education Department has issued a formal warning to a major college accrediting agency, demanding it permanently remove diversity, equity, and inclusion standards or face potential loss of federal recognition that controls access to $20 billion in student financial aid.

Federal Ultimatum Targets Middle States Commission

The Middle States Commission on Higher Education, which accredits prestigious institutions including Columbia University and the University of Pennsylvania, received a letter Monday from Under-Secretary of Education Nicholas Kent. The letter referenced a December 2025 internal meeting where members of the National Advisory Committee on Institutional Quality and Integrity raised concerns that MSCHE’s continued DEI requirements may violate the 2023 Supreme Court decision against Harvard University’s race-based admissions practices.

Adam Kissel, who serves on the advisory committee, told reporters that accrediting bodies should not compel institutions to violate federal or state discrimination laws. Kissel specifically criticized MSCHE’s requirement that schools reflect on campus-wide DEI initiatives and address disparate impacts on diverse student populations, which he interpreted as requiring the treatment of people based on race. Despite MSCHE issuing a statement promising not to enforce its standards, Kissel argued this commitment should not suffice long-term.

Monitoring Reports Required

The Education Department now requires MSCHE to submit two detailed monitoring reports explaining steps taken to eliminate DEI standards. The first report is due six months from March 16, with a follow-up report required one year later. Kent’s letter warned that if MSCHE applies suspended DEI standards to any institution, such action could constitute noncompliance and potentially lead to denial, limitation, suspension, or termination of the agency’s federal recognition.

Broader Accreditation Reform Effort

MSCHE and other independent accrediting agencies serve as gatekeepers for over $150 billion in student loan funding and Pell Grants distributed by the federal government. President Trump signed an executive order in April 2025 aimed at reforming accrediting agencies, citing their approval of low-quality institutions despite only 64 percent of undergraduates completing degrees within six years. Education Secretary Linda McMahon received authority to investigate, suspend, or revoke federal recognition for accrediting agencies that fail to comply with federal discrimination laws by promoting DEI initiatives. The White House noted that DEI standards have become standard practice for major accrediting bodies overseeing medical and law schools nationwide.

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