Key facts
- US District Judge Angel Kelley ruled the Education Department's policy lacked discernible criteria for identifying "DEI" programs.
- The judge found the department failed to consider the impact of canceling grants on recipients.
- The policy had led to the cancellation of over 90% of grants awarded through the Teacher Quality Partnership and Supporting Effective Educator Development programs.
- The Education Department had announced in February 2025 the cancellation of over $600 million in grants.
- The states argued the policy was arbitrary and capricious and violated the Administrative Procedure Act.
US District Judge Angel Kelley on Thursday struck down a policy adopted during the Trump administration that required the US Department of Education to terminate millions of dollars in grants funding diversity, equity, and inclusion initiatives. The ruling came in response to a lawsuit filed by eight Democratic-led states.
Judge Kelley stated that the policy lacked clear criteria for identifying programs considered "DEI" and thus disfavored for funding. She also found that the department failed to consider the impact of canceling these grants on those who relied on the funding, noting that thousands of teachers and those in teacher-training pipelines would be affected.
The states, led by California, Massachusetts, and New Jersey, had challenged the Education Department's February 2025 announcement to cancel over $600 million in grants. The department had cited the use of these funds to train teachers and education agencies on "divisive ideologies," including DEI and social justice activism, as the reason for the cancellations.
According to Thursday's ruling, over 90% of grants awarded through the Teacher Quality Partnership and Supporting Effective Educator Development programs were canceled as a result of the directive. This included 40 grants awarded to universities and institutions in the eight challenging states.
While the Supreme Court had previously allowed the administration to proceed with terminating the grants, Judge Kelley, appointed by President Joe Biden, determined that the original agency directive violated the Administrative Procedure Act and was arbitrary and capricious. She noted that any lawsuits seeking to recover lost funds would need to proceed in the Court of Federal Claims.