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Trump administration drops legal appeal over anti-DEI funding threat to schools and colleges

The department conceded after a judge ruled its anti-diversity funding rules violated free speech and federal procedures, affecting millions of educators nationwide.

  • On Wednesday, the U.S. Department of Education moved to dismiss its appeal, leaving a federal judge's August decision blocking the anti-DEI funding threat in place.
  • After issuing a `Dear Colleague Letter` in February, the Education Department pressed K-12 schools for certifications, warning they could lose federal funding if they maintained practices labeled as DEI.
  • U.S. District Judge Stephanie Gallagher struck down both department documents in Maryland, finding the guidance stifled teachers' free speech and caused millions of educators to reasonably fear punishment.
  • Democracy Forward hailed the dismissal Wednesday, calling it `a welcome relief and a meaningful win for public education`; the Education Department did not immediately comment.
  • The memo barred considering race in core campus decisions, including admissions, hiring, scholarships, and all other aspects of student, academic, and campus life, while the American Federation of Teachers challenged its framing of diversity efforts as discriminatory.
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Trump Administration Drops Appeal In DEI Lawsuit

Source: ANDREW CABALLERO-REYNOLDS / Getty In unexpected good news, the Trump administration has abruptly dropped an appeal against a court ruling that prevented it from withholding federal funds from schools with diversity, equity, and inclusion (DEI) programs.  According to the New York Times, the initial lawsuit was filed against the Trump administration over a threat to withhold billions in education funding if schools refused to sign a paper…

·New York, United States
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The Times of Northwest IndianaThe Times of Northwest Indiana
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Trump drops appeal of DEI court ruling

WASHINGTON — The Trump administration is dropping its appeal of a federal court ruling that blocked a campaign against diversity, equity and inclusion threatening federal funding to schools and colleges.

·Cherokee County, United States
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Winnipeg Free Press broke the news in Winnipeg, Canada on Wednesday, January 21, 2026.
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