The U.S. Department of Education has launched an investigation into 45 universities over alleged racial discrimination linked to The PhD Project, a nonprofit organization aimed at increasing diversity in business education. The move comes amid broader efforts by the Trump administration to dismantle diversity, equity, and inclusion (DEI) initiatives in higher education.
The PhD Project, which has historically helped Black and Latino students pursue business degrees, was relatively obscure until conservative strategist Christopher Rufo highlighted it in social media posts earlier this year. His posts drew the attention of Republican politicians, leading to federal scrutiny. The Education Department has warned that institutions maintaining “race-based preferences” in admissions, scholarships, or student life could risk losing federal funding.
Public and private universities under investigation include Arizona State, Ohio State, Yale, Cornell, Duke, and the University of California, Berkeley. The Education Department’s Office for Civil Rights sent letters to these institutions, informing them of the inquiry and requesting information on their association with The PhD Project by March 31.
While university leaders have largely remained silent, some institutions have swiftly severed ties with the nonprofit. The University of Kentucky ended its affiliation on Monday, while the University of Wyoming announced plans to discontinue its membership. Arizona State’s business school has ceased financial support for the program and informed faculty it would not fund travel to the nonprofit’s conference.
The investigation has created a climate of fear in higher education, with institutions wary of challenging the administration’s stance. The Trump administration has already cut federal funding to Columbia University over its handling of pro-Palestinian protests, signaling its willingness to take punitive action against institutions it views as noncompliant.
The controversy surrounding The PhD Project echoes previous disputes over DEI policies. Earlier this year, Rufo criticized Texas A&M University for sponsoring faculty travel to a DEI-related conference, prompting Republican Governor Greg Abbott to warn the university president to rectify the issue or face removal. Texas A&M swiftly withdrew from the conference, leading other Texas universities to follow suit.
Some universities have expressed confusion over the investigation’s origins. Montana State University stated it complies with all state and federal laws and was unaware of any complaints against it related to The PhD Project. Additionally, the University of Minnesota is facing a separate investigation for allegedly operating a racially segregated program, while six other universities are being probed over “impermissible race-based scholarships.”
At UC Berkeley, faculty organized a protest against the federal crackdown, gathering at Sproul Hall, a historic site of the 1960s free speech movement. African American studies professor Ula Taylor framed the issue as a direct assault on academic freedom. Chancellor Rich Lyons reaffirmed the university’s commitment to its core values, vowing to defend academic freedom and freedom of inquiry.
As the Education Department intensifies its investigations, universities find themselves in a precarious position, balancing compliance with federal directives against their commitment to fostering diverse and inclusive academic environments.
