Expanding Pathways to Economic Mobility

Investments in HBCU institutions and student yield results and future promise

In the US, the road to economic mobility runs through higher education: a college degree increases individual lifetime earnings by nearly $500,000. But Black, Latinx, and Indigenous Americans have faced systemic barriers to these opportunities.

Historically Black Colleges and Universities (HBCUs) help fill this gap. Despite representing only 3% of higher education institutions, HBCUs generate 17% of all Black bachelor’s degrees and produce roughly 40% of Black engineers, 50% of Black doctors, and 80% of Black judges. The Supreme Court’s recent decision prohibiting race-conscious admissions is widely expected to increase enrollment at HBCUs.

Yet these institutions have long been underfunded. One analysis found a $12.8 billion funding gap for HBCU endowments over the past three decades versus other higher education institutions. At the same time, the disproportionate impact of the COVID-19 pandemic on Black and Brown communities has caused steep declines in academic achievement for low-income students.

That’s why HBCU and nonprofit leaders have joined forces to create the HBCU Transformation Project. This initiative is a collaboration between the United Negro College Fund, the Thurgood Marshall College Fund, and the Partnership for Education Advancement. It launched in 2021 with a foundational investment of $60 million from Blue Meridian Partners.

To date with support from the Project, 40 HBCUs are undertaking high-return initiatives, like building technology infrastructure and testing transformative student success and administrative strategies. These core 40 colleges and others are also partnering as a network, leveraging collective knowledge and power, and procuring and deploying shared services. By addressing historic inequities, the Project is ensuring HBCUs have the necessary resources for long-term success.

“I have an asset that’s performing well, but is underinvested,” said Jim Shelton, President and Chief Investment and Impact Officer at Blue Meridian, noting that HBCUs already educate a significant share of Black doctors, teachers, and lawyers. “If I put in more resources, what could happen?”

Wall Street Journal, September 13

This month, Blue Meridian and the Project partners announced an additional investment of $124 million based on positive results from the Project’s initial phase. The funding will expand the Project’s work on systemic improvements, pave the way to expand participation among the nation’s 102 HBCUs, expand capacity to coordinate multi-campus networks, and lead capital campaigns to close funding gaps. As a result, HBCUs will build the capacity to enroll 90,000 more students and produce 22,000 more graduates, increasing Black wealth by $1.1 billion annually.

We are grateful to all of our Partners, especially Charles and Lynn Schusterman Family Philanthropies for their significant financial support, for investing so deeply in the HBCU Transformation Project, a vital contributor to US economic and social mobility. Still, tripling our commitment to the leadership and expertise of the nation’s Historically Black Colleges and Universities is not enough. Our investment is only a downpayment on the total capital HBCUs will require to fully realize their potential. We invite other philanthropies and individual donors to invest alongside us. Together, we believe our partnership can achieve the goal of improving the life trajectories of people living in poverty in the US.