The purpose of this article is to examine and critique the manner in which racialized federal education policy and reforms--or the lack thereof--affect higher education. Minority-serving Institutions designations are race-conscious policies that demonstrate a federal commitment to supporting the educational needs of students of color; however, current ambiguities in the guiding statute leave these policies at risk for being operationalized in race-evasive manners. Utilizing the example of Asian American and Native American Pacific Islander-Serving Institutions, federal agency administration and institutional approaches that utilize a "spirit of the law" design, in contrast to only adhering to the "letter of the law," are more appropriately suited to fulfill Congress' original intent of purposefully serving Asian American and Native Hawaiian/Pacific Islander (AA&NHPI) communities through culturally transformative educational interventions. Implications for policy makers and institutional leaders are offered, calling for the governing bodies to pay closer attention to how AA&NHPI populations are served in both the higher education and federal landscapes.