Major U.S. Universities Sever Ties with Diversity-Focused Nonprofit Following Federal Investigation
Yale University, the Massachusetts Institute of Technology (MIT), and 29 other American institutions of higher learning have formally terminated their partnerships with the PhD Project, a nonprofit organization dedicated to increasing representation of underrepresented minority groups in business academia. The U.S. Department of Education announced this collective action on Thursday, marking a significant development in the ongoing national debate over diversity, equity, and inclusion initiatives in higher education.
The PhD Project's Mission and Activities
Founded in 1994, the PhD Project has a clear and longstanding mission: to substantially increase the diversity of faculty members and leadership positions within U.S. business schools. The organization specifically targets Black, Hispanic, and other minority groups that have been historically underrepresented in these academic and professional spheres.
To achieve this goal, the nonprofit provides a comprehensive suite of support services for students pursuing doctoral degrees in business and management. These programs include:
- Faculty mentorship connecting aspiring scholars with established professors.
- Structured networking sessions between students and faculty from various institutions.
- Academic conferences designed to guide participants toward successful careers in academia or corporate leadership.
Yale School of Management had previously highlighted its engagement with the PhD Project on a now-removed 2020 webpage. That page explicitly stated that the "underrepresentation of Black people and other minorities in the pinnacles of leadership is a disgrace" and outlined the school's commitment to further initiatives welcoming students from diverse backgrounds. The page also documented a 2020 collaborative event with the PhD Project featuring faculty and student panels discussing the doctoral journey.
Federal Civil Rights Investigation Triggers University Response
The catalyst for the dissolution of these university partnerships was an investigation launched in March 2025 by the U.S. Department of Education's Office for Civil Rights (OCR). The probe initially targeted 45 universities, including Yale, examining whether their affiliations with the PhD Project constituted a violation of federal anti-discrimination laws.
The OCR's central allegation was that the PhD Project's programs, through their partnerships with universities, effectively "limit eligibility based on the race of participants." This, the department argued, could contravene statutes designed to prevent racial discrimination in federally funded educational programs.
In response to this federal inquiry, Yale, MIT, and 29 peer institutions entered into formal "resolution agreements" with the Education Department, agreeing to end their institutional involvement with the nonprofit. MIT confirmed it had paid a nominal fee to participate in PhD Project conferences and career fairs, a financial transaction that reportedly triggered the specific inquiry into its activities. The university resolved the matter without admitting any wrongdoing. Yale has not publicly disclosed the specific terms of its partnership or the details of its resolution with the government.
While these 31 universities have concluded their agreements, the situation remains fluid for 14 other institutions that were part of the original investigation. These universities are still in active discussions with the Education Department and have not yet agreed to sever their ties with the PhD Project.
Government Stance and Political Context
The investigation and subsequent agreements occur within a broader political context where the role and scope of the Office for Civil Rights have been contentious. Both former President Donald Trump and current Education Secretary Linda McMahon have pursued policies aimed at reducing the OCR's influence and limiting federal oversight of campus diversity programs.
In an official press release, Secretary McMahon framed the universities' actions as a positive step. "We are hopeful that other institutions with similarly discriminatory practices will follow suit," McMahon stated, "paving the way for a future where we reject judging individuals by the color of their skin and once again embrace the principles of merit, excellence, and opportunity." The Department emphasized its ongoing negotiations with the remaining universities to resolve any potential violations of federal law.
The PhD Project's Path Forward and Broader Implications
Despite the loss of these formal university partnerships, the PhD Project reports that it remains fully operational and committed to its core mission. A spokesperson for the organization, Audrey Wayne, affirmed that the nonprofit "remains focused on expanding the pool of workplace talent by developing business school faculty who inspire, mentor, and support tomorrow's leaders."
Notably, since early 2025, the PhD Project's application process has been open to all U.S. citizens and permanent residents, a move that may address some concerns about eligibility. The organization continues to host conferences, facilitate networking, and guide students interested in doctoral studies, maintaining its community engagement independent of specific university affiliations.
This development represents a notable shift in how elite American universities interact with external diversity-focused programs. For institutions like the Yale School of Management—founded in 1976 with a stated philosophy emphasizing diversity and inclusion—the decision to end the partnership marks a recalibration in response to federal pressure. The episode underscores the complex and often fraught balancing act in U.S. higher education between advancing diversity initiatives, complying with civil rights legislation, and navigating increasing federal scrutiny.
