THE UNDER FUNDING OF HISTORICALLY BLACK COLLEGES AND UNIVERSITIES - Issue Brief - October 21, 2025

Oct 15, 2026

Research highlights that Historically Black Colleges and Universities (HBCUs) have supported upward mobility for low-income and underrepresented students in the United States for more than a century, producing substantial annual economic impact. Despite documented successes, federal and state funding has lagged behind that of comparable institutions, resulting in large underfunding gaps. The text reviews key historical milestones, including segregation-era origins, major federal legislation, and judicial decisions, showing how structural discrimination limited resources while HBCUs continued serving critical roles in higher education today.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages13

Reading Time33 min

AccessFree to download

Issue Brief

Overview of Economic Impact and Funding Gap

History of HBCUs

Land Grant Origins and Early Exclusion

Morrill Acts and the Development of HBCUs

Plessy v. Ferguson and Separate Education

Civil Rights Act and Higher Education Act (Title III)

Post-Desegregation Court Criteria and Investments

Current Role and Student Outcomes

THE UNDER FUNDING OF HISTORICALLY BLACK COLLEGES AND UNIVERSITIES I S S U E B R I E F O C T O B E R 2 1 , 2 0 2 5 Research has shown that Historically Black Colleges and Universities ( HBCUs) have been passages to upward mobility for low-income and underrepresented students in the United States for over 100 years, generating $16.5 billion annually in economic impact across the country for communities. While research shows strides of success from HBCUs, federal and state funding has not kept pace with the funding afforded to other institutions in the state. In comparison to predominantly white institutions HBCUs have been underfunded by $12.8 billion between 1987 and 2020. History of HBCUs HBCUs are institutions of higher education (IHEs) established prior to 1964, during the era of legal segregation, with the mission to provide Black Americans with a postsecondary education. HBCUs are concentrated in the South and Southeast regions of the United States and include both two-and four-year institutions. However, several HBCUs are also located throughout the Northeast and Midwest, as depicted in figure 1 below. At their peak in the 1930s, there were 121 four-year HBCUs; today, there are 101 accredited four-year HBCUs serving more than 228,000 students. Figure 1: Historically Black Colleges and Universities Public Private Land Grant Institution Non-Land Grant Institution Source Land grant colleges or universities are institutions that were designated by the state legislature to receive benefits under the Morrill Act of 1862 , making it possible for states to establish public colleges funded by the development or sale of associated federal land grants. This act, however, was established primarily for white students. HBCUs were born out of the fact that Black Americans were shut out of many traditional pathways into higher education. Prior to the Civil War, no structured higher education system existed for Black students, and as a result, they were barred from participating in education. In fact, certain statutory provisions prohibited the education of Black Americans in various states across the U. S. After the civil war, access to elementary and secondary education began to grow for Black students, but it was not until the Second Morrill Act of 1890 that federal law required the development of higher education institutions for Black students. The Second Morrill Act stated that no federal funding under this Act would be given to any state or territory that discriminates based on race in college admissions. If a state chose to maintain separate colleges for white and Black students, however, it was considered acceptable only if the federal funds were fairly divided between the two institutions. This Act led to the development of most of the HBCUs in the southern states. While the Act expanded higher education access for Black students, it also unintentionally reinforced segregation within educational institutions, especially in the South. The 1896 Supreme Court decision on Plessy v. Ferguson established the “separate but equal”doctrine and further embedded the need for HBCUs in America. The court ruling established separate elementary and secondary school systems, which in turn created a need to train Black teachers. HBCUs stepped up by providing educator preparation programs in order to fill the need for Black teachers. By the time the U. S. Supreme Court overturned“separate but equal” in Brown v. Board of Education (1954), HBCUs were already deeply rooted in the American higher education system. However, decades of racial discrimination had left them with fewer resources and weaker infrastructure than their predominantly white counterparts. In the decade following desegregation, some HBCUs were closed or absorbed into larger PWIs, while those that remained continued to serve as vital institutions for Black students seeking higher education. The Civil Rights Act of 1964 sought to create more equit

FAQs

What problem does the issue brief focus on regarding HBCUs?

The issue brief focuses on the underfunding of Historically Black Colleges and Universities compared with predominantly white institutions.

How does the document describe the impact of HBCUs despite funding shortfalls?

It states that HBCUs have been pathways to upward mobility for low-income and underrepresented students for over 100 years and generate significant annual economic impact.

What historical developments does the document cite to explain why HBCUs emerged and persisted?

It cites segregation-era exclusion from higher education, the Morrill Acts (including the 1890 act), Supreme Court rulings such as Plessy v. Ferguson, and later federal actions including the Civil Rights Act of 1964 and provisions of the Higher Education Act of 1965.

Oct 15, 2026

Uploaded by Maya Linwood