North Carolina’s HBCUs: Battling Underfunding, Politics, and Leadership Challenges

North Carolina’s Historically Black Colleges and Universities (HBCUs) are at a crossroads, facing an uphill battle against political shifts, financial inequities, and leadership turnover. In just three years, seven out of ten HBCU leaders in the state have stepped down—an alarming trend fueled by partisanship, longstanding underfunding, and internal governance struggles.

The Political Storm: DEI Under Fire

Harold Martin Sr., Chancellor Emeritus of North Carolina Agricultural and Technical State University (N.C. A&T), highlights the shifting political landscape as a major hurdle. With efforts to ban Diversity, Equity, and Inclusion (DEI) initiatives gaining traction, HBCU administrators are finding it increasingly difficult to foster inclusive environments.

“The push to eradicate DEI has impacted higher education nationwide, but it’s particularly concerning for HBCUs,” Martin explains. “We are all trying to navigate how this affects our ability to recruit students and create a welcoming atmosphere on campus.”

Two anti-DEI bills introduced in the North Carolina General Assembly—Senate Bill 227 and House Bill 171—threaten to further marginalize these institutions. The former seeks to eliminate DEI in public education, while the latter extends these restrictions to state and local government agencies, even criminalizing the use of public funds for DEI efforts.

Jerry Wilson, Director of Policy and Advocacy at the Center for Racial Equity in Education (CREED), sees this political climate as a driving force behind leadership instability.

“It’s incredibly challenging to serve the students that HBCUs cater to when equity initiatives are under attack,” Wilson notes. “These institutions have long worked to level the playing field, but now even that mission is being scrutinized.”

Federal Threats: What’s at Stake for HBCU Funding?

Beyond state-level politics, HBCUs are also bracing for potential federal funding cuts. Martin warns that if the U.S. Department of Education is dismantled, as proposed by former President Donald Trump, Title III-B funding—critical for minority-serving institutions—could be in jeopardy. These funds support essential services like staffing, technology upgrades, and infrastructure maintenance.

“Losing these funds would be devastating,” Martin emphasizes. “HBCUs rely on them for financial stability, and their absence could put many institutions at serious risk.”

A History of Underfunding

HBCUs have faced chronic underfunding for decades. A 2023 federal analysis revealed that from 1987 to 2020, 16 of the nation’s 19 historically Black land-grant universities were underfunded by a staggering $13 billion. North Carolina alone has a funding gap exceeding $2 billion between its HBCU land-grant institutions and their predominantly white counterparts.

David Sheppard, Chief Business and Legal Officer for the Thurgood Marshall College Fund, underscores the impact of this disparity.

“State governments are simply not honoring their obligations to fund HBCUs equitably,” Sheppard states. “This puts these institutions at a severe disadvantage compared to predominantly white institutions that receive full state support.”

Financial Pressures and Enrollment Challenges

For private HBCUs, financial stability hinges on tuition revenue. Unlike public universities, they don’t receive state funding, forcing them to balance affordability with operational sustainability. Many students depend on federal aid and loans to afford tuition, making any disruptions to funding particularly damaging.

Public HBCUs face a different financial strain: tuition rates are controlled by the University of North Carolina (UNC) System Board of Governors. For nearly a decade, the board has restricted tuition hikes for in-state students, limiting revenue growth. Given that most HBCU students are in-state, this restriction has created financial hurdles.

“The competition for students is intense,” Martin explains. “With a relatively flat high school graduation rate in North Carolina, all universities—both public and private—are fighting for the same pool of students.”

Recognizing these challenges, Martin successfully petitioned to increase N.C. A&T’s out-of-state enrollment cap from 18% to 25% during his tenure. This strategy led to increased enrollment, improved retention, and stronger graduation outcomes. Today, several North Carolina HBCUs have expanded their out-of-state enrollment caps:

• N.C. A&T & North Carolina Central University: 35%
• Elizabeth City State University: 50%
• Winston-Salem State University & Fayetteville State University: 25%

Infrastructure and Technological Gaps

Underfunding extends beyond tuition—it affects campus infrastructure and technology. While predominantly white institutions boast cutting-edge facilities and seamless Wi-Fi access, many HBCUs struggle with outdated buildings and limited digital resources.

“Imagine a college campus where Wi-Fi isn’t a given,” says Harry Williams, President and CEO of the Thurgood Marshall College Fund. “It’s a basic necessity for modern education, yet some HBCUs lack reliable access, putting students at a disadvantage.”

Governance Conflicts and Leadership Exodus

A lesser-discussed issue plaguing HBCUs is governance conflict. Increasingly, university board positions are filled with political appointees who may lack higher education experience. According to Sheppard, these board members often overstep their roles, creating friction with university presidents and chancellors.

“Some appointees come in with their own agendas, rather than focusing on the institution’s best interests,” he explains. “This interference makes leadership positions untenable, leading to high turnover.”

The Future of North Carolina’s HBCUs

Despite these challenges, Wilson remains firm in his belief that HBCUs are more essential than ever.

“These institutions were founded out of necessity, and their role remains just as critical today,” Wilson says. “At a time when diversity and equity efforts face hostility, HBCUs continue to be the best option for Black students in North Carolina.”

As North Carolina’s HBCUs navigate these turbulent waters, their resilience and commitment to education remain unwavering. However, the path forward demands advocacy, equitable funding, and policies that prioritize their survival—not their suppression.