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DIVERSITY LEGAL

Federal judge strikes down Education Department rule stripping DEI grants

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A judge's gavel; Anna Stills/Shutterstock

Department failed to explain why it reversed course on teacher training grants

A federal judge blocked a U.S. Department of Education rule stripping grants from teacher prep programs that teach DEI.

In February 2025, the department pulled “over $600 million in grants to institutions and nonprofits that were using taxpayer funds to train teachers and education agencies on divisive ideologies,” according to a news release

“Training materials included inappropriate and unnecessary topics such as Critical Race Theory; Diversity, Equity, and Inclusion (DEI); social justice activism; ‘anti-racism’; and instruction on white privilege and white supremacy,” the release states. 

Calling the directive “arbitrary and capricious,” District Judge Angel Kelley ruled that officials failed to adequately explain why they were reversing course on grants that historically encouraged DEI programs, according to The Hill

“Rather than confining the Directive to actions that are traditionally understood to constitute discrimination, the record instead reflects that Defendants terminated grants with topics such as ‘acknowledging … racism’ and ‘anti-racism’—activities expressly undertaken to oppose discrimination,” Kelley wrote. 

The judge added that the department bypassed mandatory public notice and comment periods, and ignored how heavily states, teachers, students, and principals depend on the funding, according to WPRI

Last year, a group of Democratic-led states challenged the directive, arguing the department was placing “onerous” and “excruciatingly difficult” demands on them, according to K-12 Dive

Responding to the lawsuit, Education Department Press Secretary Savannah Newhouse told The Hill, “Taxpayer dollars should support preparing teachers for meaningful student learning, expanding the pipeline of high-quality teachers, and retaining top talent — not funding divisive ideology or racial preferences.”

Although a Boston federal judge and appeals court initially blocked the administration from halting the funding, the Supreme Court allowed the grant cuts to proceed in April 2025 while the legal battle continued.

Earlier this year, a federal judge blocked President Donald Trump’s effort to cancel $175 million in National Endowment for the Humanities grants over their DEI ties, citing a violation of the First Amendment, The College Fix previously reported. 

Judge Colleen McMahon ruled that the Trump administration engaged in viewpoint discrimination when it canceled the NEH grants. 

However, the Trump administration continues to crack down on DEI. 

In August, the administration introduced a new rule that would make it easier for new accreditors to be approved and ban race-based recruiting, according to a department news release.

“The proposed changes would break up entrenched accreditation monopolies and reorient the sector to prioritize innovation, academic excellence, and student outcomes,” the release states.

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