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You are here: Home / News / Worcester College Access Nonprofit Shuts Down After Federal Funding Axed Over DEI Mention

Worcester College Access Nonprofit Shuts Down After Federal Funding Axed Over DEI Mention

Dated: October 5, 2025

A Worcester-based nonprofit dedicated to helping Massachusetts residents, especially first-generation college students, pursue higher education has been forced to close after the U.S. Department of Education revoked federal funding. The decision, triggered by the organization’s mention of diversity, equity, and inclusion (DEI) training in its grant application, led to staff layoffs and the suspension of crucial services for thousands of students.

Key Takeaways

  • MassEdCo, a long-standing Worcester nonprofit, lost about $2 million in federal grants after referencing DEI in its application.
  • The Trump administration cited a policy change as the reason for the funding withdrawal.
  • With nearly half its funding gone, MassEdCo laid off staff and ended core college access programs.
  • Communication with the federal government has been hampered by a government shutdown.

Nonprofit’s Legacy And Mission

Since its founding in 1973, MassEdCo has guided over 250,000 Massachusetts residents through the process of applying to college, financial aid, and scholarships. Its team worked directly with students in Worcester-area high schools, specializing in support for first-generation college applicants and families unfamiliar with financial aid forms like the FAFSA.

The Funding Cut: How And Why It Happened

On September 15th, MassEdCo was informed that three critical federal grants—totaling nearly $2 million, or 45% of its annual budget—would be canceled at month’s end. According to MassEdCo leadership, the Department of Education specifically cited a reference to DEI training for staff on page 46 of their nearly 60-page grant application.

A letter from the department stated that proposals promoting DEI training conflicted with current administration policies, referencing a broader review of grants to align funding with new governmental priorities.

Impact On Worcester Students And Families

The lost funding forced MassEdCo to lay off its staff on September 30, immediately halting essential services. The organization’s education opportunity centers, previously a lifeline for more than 7,000 students per year, have now stopped operations. Other grants, like the federal Talent Search program, remain unusable without staff and infrastructure to manage them.

Mark Bilotta, MassEdCo’s CEO, noted the challenge in transferring existing grants to another local entity capable of continuing their mission, especially during a period of limited communication with federal agencies due to a government shutdown.

Debate Over Federal Grant Policies

The withdrawal of MassEdCo’s grants reflects a wider national debate over both the legality and politics of pulling previously appropriated educational funding due to shifting policy preferences. Organizations advocating for college access and civil rights protections have raised questions over the federal government’s authority to impound funds, particularly when priorities across administrations change.

Looking To The Future

While MassEdCo’s closure marks the end of over fifty years of support for aspiring college students in Worcester, community leaders and education advocates are mobilizing to find new ways to fill the gap. Whether other organizations will be able to pick up MassEdCo’s mission amid ongoing policy uncertainty remains to be seen.

Sources

  • Worcester nonprofit MassEdCo loses federal funding over DEI training, Worcester Telegram.
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