Santa Barbara City College’s Federal Funding Threatened
Millions in Grants, Loans, and Programs Could Be at Risk
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.”
