Federal Judge to Block University of Texas Race-Based Scholarships by January 13, Officials Say

The Ruling

A federal judge in Austin plans to issue a preliminary injunction by January 13 blocking the University of Texas at Austin from awarding race-based scholarships, according to two university officials familiar with the case. The officials said the presiding judge informed attorneys during a closed-door conference on January 9 at 10:00 a.m. that he would rule against the university's $14.7 million portfolio of diversity scholarships and race-conscious financial aid programs.

The lawsuit, filed in November by a group of students represented by the America First Legal Foundation, argues that the university's scholarship programs violate the Equal Protection Clause and Title VI of the Civil Rights Act of 1964. A plaintiff's attorney involved in the case said the judge indicated he would grant the preliminary injunction based on the Supreme Court's 2023 decision in Students for Fair Admissions v. Harvard and the University of North Carolina.

The preliminary injunction would take effect on January 13 at 9:00 a.m. Central Time, the officials said. The university would be barred from considering race or ethnicity in scholarship awards for the spring 2026 semester, which begins January 14. The ruling would affect approximately 2,300 current scholarship recipients and force the university to redesign its financial aid system before tuition bills are due on January 20.

The proposed order would require UT Austin to submit monthly compliance reports to the court and to the Department of Education's Office for Civil Rights, the plaintiff's attorney said. The attorney said the order would also require the university to preserve all records related to scholarship awards from 2023 through 2025 and to produce those records to the plaintiffs by February 15.

University Response

Two university officials said UT Austin administrators held an emergency meeting on January 8 to prepare for the ruling. The officials said the university's general counsel, financial aid office, and admissions staff discussed contingency plans to reallocate the $14.7 million in scholarship funds through race-neutral criteria such as family income, first-generation college status, and geographic diversity.

A student involved in the case said the plaintiffs received notice on January 8 that the court would likely rule in their favor. The student, who spoke on condition of anonymity because of ongoing litigation, said attorneys for the plaintiffs were told to prepare a proposed order for the judge to sign by January 12.

The university has not publicly commented on the expected ruling. A spokesperson for UT Austin did not respond to requests for comment on January 9. The Texas Tribune, the Austin American-Statesman, and the Dallas Morning News have not reported the development. The case is being watched closely by higher education attorneys nationwide because it could force other public universities to overhaul race-based financial aid programs.

One university official said the Office of the Executive Vice President and Provost has formed a working group to review all scholarship criteria by January 17. The working group includes representatives from the law school, the financial aid office, the registrar, and the diversity and community engagement office. The official said the working group will report its findings to the university president by January 19.

What Happens Next

Legal experts said the preliminary injunction, if issued on January 13, would likely trigger an immediate appeal by the University of Texas System to the U.S. Court of Appeals for the Fifth Circuit. The appeal would be filed in New Orleans, where the Fifth Circuit is headquartered. Two congressional aides briefed on the matter said Republican members of the House Education and Workforce Committee plan to hold a hearing in late January on race-based scholarships at public universities.

The Department of Education is expected to issue guidance on race-neutral financial aid within 72 hours of the ruling, according to a department official familiar with the plan. The guidance would clarify that universities may consider socioeconomic status, legacy status, and geographic diversity but may not use race as a factor in scholarship awards.

Advocacy groups on both sides are preparing statements. The Foundation for Individual Rights and Expression and the Southeastern Legal Foundation are expected to praise the ruling, while the NAACP Legal Defense Fund and the American Council on Education are expected to criticize it. Several university presidents have scheduled conference calls for January 14 to discuss compliance strategies.

The ruling could also affect pending lawsuits against the University of Michigan, the University of California system, and the University of North Carolina. Attorneys for the plaintiffs in the Texas case have said they will file similar challenges in those jurisdictions by February 1. The Texas case is seen as a test case because the Fifth Circuit has previously ruled against race-conscious admissions policies.

Major national outlets, including the Associated Press, Reuters, the New York Times, and the Wall Street Journal, have not confirmed the expected ruling. Those outlets are expected to report the development after the court issues the preliminary injunction on January 13. The Alamo Post is publishing this account based on interviews with two university officials, a plaintiff's attorney, and a student involved in the case.