It’s April. If you look at your corporate calendar or your LinkedIn feed, you’ll see the banners. "Celebrate Diversity Month." It’s supposed to be a time for reflection, for honoring the different threads that make up the fabric of our society.
But look closer at what’s happening in higher education across the country, and the celebration feels a little hollow. Actually, it feels like a gaslight.
While the posters go up in the hallways, the offices they represent are being quietly packed into cardboard boxes. It’s a massive, coast-to-coast disappearing act. Since 2016, and with a massive acceleration over the last few months, Ethnic Studies programs and Diversity, Equity, and Inclusion (DEI) initiatives are being gutted.
And the irony? They’re being axed right when the institutions are patting themselves on the back for being "inclusive."
The Art of the Quiet Cut
University administrators are smart. They know that outright "banning" a program causes a riot. So, they don’t always ban them. They "restructure" them.
Based on recent reports from sources like Inside Higher Ed and AP News, the tactics are becoming standardized. It’s a corporate playbook applied to the ivory tower. Here is how you make a program disappear without technically "deleting" it:
- The Merge: You take a standalone Ethnic Studies department and fold it into a larger, more "general" unit like Sociology or Liberal Arts. On paper, the classes still exist. In reality, the program loses its chair, its dedicated budget, and its power to hire faculty who specialize in that specific field.
- The Defund: You keep the office door open, but you cut the staff from six people to one part-time intern. When the office can’t fulfill its mission, you point to "low engagement" as a reason to close it for good next year.
- The Rebrand: You remove "Diversity" from the title and replace it with something vague like "Student Success" or "Community Belonging." It sounds nice, but it strips away the specific mandate to protect and elevate marginalized groups.
The Canary in the Coal Mine: University of Michigan
Look at what happened at the University of Michigan. For eight years, U-M was the gold standard for DEI. They had a massive initiative, deep data, and measurable results. Then, in March 2025, they shut it down.
Why? Because the federal government threatened to pull $1.25 billion in research funding.
When that kind of money is on the table, "values" tend to get real flexible, real fast. U-M isn’t alone. Over 300 colleges and universities have already started scrubbing diversity statements from their hiring processes and closing DEI offices.
This isn’t just a budget issue. Don't let them tell you it's about "low enrollment" or "fiscal responsibility." This is a direct response to political pressure. It’s a calculated retreat. And while we understand the complexities of navigating federal mandates, the cost of this retreat is being paid by the students and the community.
Visibility is Not Optional
At McFadden Finch Holdings Company, we talk a lot about community impact and social impact. We don't just see these as buzzwords for a CSR report. We see them as the foundation of a stable, thriving economy.
When you eliminate an Ethnic Studies center, you aren't just "saving money." You are removing a hub of visibility. For many students, these centers are the only places on campus where their history isn't treated as an elective or a footnote.
Visibility is a prerequisite for impact. If a group isn't seen, their needs aren't met. If their needs aren't met, they don't succeed. If they don't succeed, the community loses out on their talent, their leadership, and their economic contribution. It’s a straight line from the classroom to the boardroom.
We believe that corporate social responsibility means standing up for the structures that create a pipeline of diverse talent. When those pipelines are dismantled under the guise of "restructuring," we all lose. You can’t have lasting community impact if you’re actively erasing the history and support systems of the people who make up that community.
The Autonomy Trap
The most dangerous part of this trend is the loss of autonomy. When a department is merged into a larger unit, it loses its voice. It no longer has a seat at the table when budgets are being decided. It becomes a line item that can be easily trimmed during the next "audit."
This is a tactic we see in the business world all the time. If you want to kill a project without the bad PR of a cancellation, you move it under a manager who doesn't care about it. You starve it of oxygen until it dies "naturally."
But education isn't a typical business venture. The ROI of an Ethnic Studies department isn't measured in quarterly dividends; it’s measured in the lived experience of the students and the long-term health of our social fabric.
What "Celebrate Diversity Month" Should Actually Look Like
If we’re going to celebrate diversity in April, let’s do it with some honesty.
Celebrating diversity shouldn't mean putting up a poster. It should mean protecting the programs that actually do the work. It should mean questioning why "restructuring" always seems to happen to the programs that serve the most vulnerable.
It should mean looking at the leadership and asking: Are we actually committed to this, or are we just waiting for the political wind to change so we can go back to the status quo?
At MFHC, we lean into these tensions. We know that building meaningful partnerships requires acknowledging uncomfortable truths. The truth is that diversity on campus is under fire, and the "restructuring" language is just a polite way to say "retreat."
Moving Forward
So, where does that leave us?
It leaves us with a choice. We can accept the "Great Disappearing Act" as an inevitable byproduct of the current political climate, or we can demand more from our institutions. We can support the schools that are resisting: the ones like Cabrillo College and Monterey Peninsula College that are standing their ground despite the pressure.
We can also ensure that our own organizations and holdings stay rooted in the values of inclusion and visibility, regardless of what the "trend" of the month is.
Diversity isn't a seasonal theme. It's not an April-only event. It’s a core component of how we build a future that actually works for everyone.
If we let these programs disappear now, don’t be surprised when the talent pipeline dries up ten years from now. You can’t harvest what you refuse to plant.
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McFadden Finch Holdings Company (MFHC) is a premier holdings and investment management firm dedicated to driving sustainable growth and long-term value. Our mission is to bridge the gap between visionary capital and community-centric development, ensuring tomorrow's infrastructure meets today's needs. Through strategic project management and rigorous market analysis, we empower our partners to navigate the complexities of the California economic landscape with confidence and clarity.
For more information on how MFHC can support your industrial or real estate investment strategy, contact us at (510) 973-2677 or visit www.m-fhc.com
Sources:
Based on reports from AP News, Inside Higher Ed, WABE, The Gazette, KTVZ News, and the Ohio Capital Journal.
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