Tennessee has officially contested how the U.S. Department of Education distributes federal grants intended to assist Hispanic-serving institutions. The state contends that the current formula is unfair, as it overlooks colleges with diverse student bodies that do not meet strict HSI criteria but still face similar challenges. Since these designated HSIs receive substantial portions of federal aid, Tennessee claims this system places schools with mixed demographics at a disadvantage, potentially sidelining students attending non-HSI campuses.

This lawsuit raises pivotal questions about equity in educational funding and may trigger a nationwide review of grant distribution methods. Key issues highlighted by Tennessee include:

  • Equitable Funding:…