HBCUs Face Higher Risk of Closure in the Next Five Years: How America Treated Its Black Colleges

Crisis of Enrollment and Survival: A recent report by the Federal Reserve Bank of Philadelphia has sounded the alarm for America’s colleges. By 2029, as many as 80 colleges could shutter due to a brewing crisis shaped by shifting demographics, financial pressures, and waning perceptions of higher education’s value.
Historically Black Colleges and Universities (HBCUs), alongside women’s colleges, stand disproportionately vulnerable to this impending wave of closures. Many HBCUs operate with smaller endowments, narrower applicant pools, and little state or federal support, making their survival an increasingly uphill battle.
While urban institutions benefit from geographic advantages that draw students, HBCUs face a unique dilemma: Enrollment trends, financial inequalities, and decades of systemic underfunding have created a perfect storm. But why are HBCUs at such risk, and how did we get here? To understand their struggle, we must first understand what HBCUs are, where they came from, and how they’ve evolved over time.

What Exactly Are HBCUs?

The United States Congress officially defines HBCUs as accredited higher education institutions founded before 1964 with the primary mission of educating Black students. The roots of these colleges date back to the post-Civil War era, when educational opportunities for Black Americans were virtually non-existent.
While a handful of HBCUs, like Cheyney University of Pennsylvania, were established before the Civil War, most emerged between 1867 and 1900, offering education to newly freed enslaved people and other marginalized Black Americans.
Today, HBCUs represent a diverse range of public and private institutions. In 2022, there were 99 HBCUs across the United States, split almost evenly between public (50) and private (49) schools, according to a Pew Research Center report. Most of these institutions focus on awarding bachelor’s degrees, although many also offer graduate programs. Geographically, HBCUs are primarily located in the South—a legacy of their historical role in the region’s education system.
Alabama leads with 13 HBCUs, followed by North Carolina (10), Georgia, and Texas. Yet their reach extends beyond the South, with institutions like Lincoln University in Pennsylvania and the University of the Virgin Islands.
But numbers only tell part of the story. Despite their historical significance, the challenges of enrollment trends and inequitable funding continue to threaten HBCUs’ survival.

Enrollment Trends: Growth, Decline, and a Changing Student Body

According to the Pew Research report, at their peak in 2010, HBCUs enrolled over 326,000 students, reflecting a steady growth trend since 1976. Yet by 2022, enrollment dipped to just under 290,000—a nearly 11% drop. Though today’s figures still mark a 30% increase from 1976 levels, the trends reveal a critical shift: HBCUs are enrolling fewer Black students as the broader higher education landscape evolves.
Why? The share of Black students attending HBCUs has declined steadily since desegregation opened doors to predominantly white institutions. In 1976, 85% of HBCU students were Black; by 2022, that figure had dropped to 76%. At the same time, enrollment among non-Black students at HBCUs surged by 117% during the same period, reflecting a diversification of the student body.
Meanwhile, Black enrollment at colleges nationwide skyrocketed by 125% between 1976 and 2022, outpacing the 63% growth seen among students of other races. The result? Black students now make up about 13% of all college students—roughly in line with their share of the U.S. population.
This dual trend of HBCU diversification and increasing competition for Black students has squeezed enrollments. As fewer students choose HBCUs, financial pressures grow more severe.

The Financial Reality of HBCUs: Underfunded and Overlooked

Most HBCUs, whether public or private, face severe financial challenges rooted in historical inequities. Public HBCUs, for example, have long been underfunded compared to their predominantly white counterparts. A 2023 analysis by the U.S. Departments of Education and Agriculture revealed that between 1987 and 2020, Black land-grant institutions were underfunded by a staggering $12.6 billion.
Take Tennessee State University (TSU) for example. It’s a public land-grant HBCU, founded in the 19th century. Between 1987 and 2020, TSU received $1.9 billion less in state funding than the University of Tennessee, its predominantly white counterpart.
Similar disparities exist elsewhere. North Carolina Agricultural & Technical State University (NC A&T)—the largest HBCU in the nation—has been underfunded by $2.8 billion during the same period.
The underfunding is cyclical: White institutions benefit from decades of generous state funding, enabling advanced research facilities and larger endowments. In contrast, HBCUs struggle to secure basic resources, let alone compete as research powerhouses. For example, NC State University received an additional $79 million for research in 2020, while NC A&T received only $9.5 million.

A Stark Divide in Endowments and Alumni Support

Funding disparities don’t end with state appropriations. HBCUs also contend with smaller endowments, which depend largely on alumni donations. In 2020, the average endowment at white land-grant universities was $1.9 billion, compared to just $34 million at Black land-grant schools. At Fort Valley State University in Georgia, the endowment was a mere $6.6 million, dwarfed by the University of Georgia’s $1.3 billion.
Smaller endowments mean less funding for scholarships, faculty, facilities, and research—all critical components of attracting students and remaining competitive. For HBCUs already grappling with declining enrollments, limited financial resources exacerbate the risk of closure.

What Does the Future Hold for HBCUs?

The challenges facing HBCUs are undeniable, but their legacy of resilience cannot be overlooked. These institutions have produced some of the most influential leaders in Black history—from Martin Luther King Jr. to Kamala Harris. They continue to serve as cultural, academic, and economic pillars in their communities.
But can HBCUs survive without meaningful policy changes and increased investment? Will the government address the funding inequities that have persisted for decades? Or will we see a wave of closures that threatens to erase this vital part of America’s educational fabric?
The answer depends on whether the nation chooses to prioritize and preserve these historic institutions. For HBCUs, the time for meaningful support is now—before it’s too late.