Santa Barbara City College’s Federal Funding Threatened

Warnings from the Department of Education that it will slash federal funding for educational institutions with Diversity, Equity, and Inclusion programs has thrown Santa Barbara City College’s future into uncertainty. As a recognized Hispanic-serving institution, SBCC receives three grants in the millions of dollars annually that are funded directly by the Department of Education. These could be at risk, along with other federal funds the school receives.

Approximately $15.6 million in federal funds went to the school in 2023-24, according to SBCC Vice President of Student Affairs Paloma Arnold. These funds are composed of Pell Grants, federal student loans, PLUS (Parent Loan for Undergraduate Study) loans, federal work-study program funds, and federal supplemental educational opportunity grants. All are regulated by the Department of Education (DOE). 

On February 14, the DOE issued a letter warning schools — ranging from preschool to post-secondary — that programs treating students differently to promote “diversity, racial balancing, social justice or equity” were unlawful. The letter stated that institutions that do not comply with new regulations may “face potential loss of federal funding.” It described discrimination at education institutions as “against students on the basis of race, including white and Asian students, many of whom come from disadvantaged backgrounds and low-income families.” 

Under the DOE’s current definition of discrimination, programs supporting historically marginalized groups — like SBCC’s ¡Raíces: First Year and Beyond! Program — might be viewed in this light. The Raíces program provides academic support and cultural resources for Latinx students, aiming to address historical educational disparities and empower low-income and first-generation students. The DOE frames such targeted support as unlawful, arguing that it may unfairly disadvantage other racial groups. This perspective diverges from the rationale that first created such programs.

Attorneys general in 16 states have given a perspective on anti-discrimination laws, which arose out of the civil rights movement a half-century ago. When it came to employment, they wrote in a joint statement, “These policies and programs are not only consistent with state and federal anti-discrimination laws, they foster environments where everyone has an opportunity to succeed. That is the opposite of discrimination.”

Additional programs on SBCC’s campus like the Center for Equity and Social Justice (CESJ) and the DREAM Center — which stands for “Development, Relief and Education for Alien Minors” offers resources and academic support for undocumented students. But an SBCC official who commented for this story expressed optimism that funding would continue. 

“I don’t think they’re in danger,” said Jordan Killebrew, spokesperson for the college, who clarified that while some of the work of the CESJ and DREAM Center is DEI, they are funded by the state not federal funds. “The term DEI, to many people, means different things. For our Center for Equity and Social Justice, they are looking to really focus on their populations that are struggling right now.”

Around 42 percent of SBCC’s student population identifies as Hispanic, allowing SBCC to receive additional federal funding under Title V of the Higher Education Act. This act supports programs aimed at improving educational outcomes for Hispanic and low-income students. SBCC relies on Hispanic-Serving Institution grants to fund various academic support services, financial aid opportunities, and programs that promote equity and inclusion on campus, specifically for the Hispanic community. 

“We’re, like, $14 million in Hispanic Serving Institute money, our college is, like, 40 percent Mexican, Latin, so that would hurt the Hispanic community directly,” SBCC Ethnic Studies Department Chair Thomas Carrasco said. “It will definitely affect the most marginalized students, like our lowest-income students.”

SBCC Trustee Jett Black-Maertz was equally concerned the school could lose funding, but added, “At this point, it is unclear how or if the courts will allow the DEI-related orders to move forward.”

On Monday, Linda McMahon was confirmed as the new secretary of the Department of Education, which provides federal funding to public institutions. McMahon has said she agreed with the president’s goal of eliminating the department she now leads.

Despite the potential loss of funding to on-campus programs and student life, college leaders stressed that SBCC aims to remain a hub where everyone — regardless of background — can find education and community resources. 

“We’re going to stick with our students,” Killebrew said. “We’re going to stick by our community, and we are going to do everything we can to prioritize learning, our students, and do what we do best — educate.”

Correction: This article was updated to correct the percentage of SBCC’s Hispanic student population and to clarify that SBCC’s Center for Equity and Social Justice and the DREAM Center are funded by the state.