The Obama administration proposed its first full education budget Thursday, with funding for an array of new programs but a net decrease for minority-serving colleges and universities.

The line-by-line budget would cut funding for historically Black colleges and universities, tribal colleges and Hispanic-serving institutions, because it fails to make permanent a temporary spending increase enacted for the past two fiscal years.

Back in 2007, Congress allotted special funds to HBCUs, HSIs and tribal colleges, giving them $500 million from savings achieved through student loan reforms. This spending was scheduled to last two years and end after fiscal year 2009, although advocacy groups have sought to make the increases permanent.

The short-term funding includes annual allotments of an extra $100 million for HSIs, $85 million for HBCUs and $30 million for tribal colleges.

“This budget makes tough decisions,” said Secretary of Education Arne Duncan at a news briefing outlining the budget.

Commenting on the short-term spending increases for HBCUs and HSIs, he said, “It was absolutely set up as a two-year program.”

While acknowledging their budget would cut MSI funding, administration officials said students of color stand to gain significantly under other initiatives, including Pell Grant increases and a new $2.5 billion program supporting a major Obama goal, increased college completion rates.

“If we’re going to get close to the president’s goals, these grants will be very important,” Duncan said.

The budget also would raise the maximum Pell Grant to $5,550 and have future allotments mirror inflation. Funding for college access and preparation programs would remain unchanged; federal TRIO and GEAR UP programs would continue to receive $905 million and $313 million, respectively.

Robert Shireman, deputy education undersecretary, said he expected HBCUs, HSIs and tribal colleges to lobby Congress this year to continue the special two-year allotments.