I don't see an actual problem for the university; they are now required to only admit those who qualify on an academic basis. This should actually improve the university; one of my classmates managed to get into UCLA with a 2.9 GPA simply because he was black. Better students, regardless of race, are a plus.
2.9 GPA isn't that terrible really for a lot of State run schools in this country, though the Elite top schools won't even look at you if you are under 3.4