Federal Judge Strikes Down Anti-DEI Teacher-Grant Policy

BOSTON — A federal judge has struck down a U.S. Department of Education policy used to cancel more than $600 million in teacher-training grants tied to diversity, equity and inclusion initiatives, ruling that the directive violated federal administrative law.

U.S. District Judge Angel Kelley issued the decision Thursday, Sept. 17, in favor of eight Democratic-led states that challenged the Trump administration policy. The states argued that the department canceled grants without clear standards and failed to account for the effect on schools, universities, educators and teachers in training.

The Education Department announced the cancellations in February 2025, saying the grants supported what it characterized as divisive ideologies, including DEI and social-justice activism. The affected awards came through the Teacher Quality Partnership and Supporting Effective Educator Development programs, which help recruit, prepare and retain K-12 teachers.

According to the ruling, more than 90% of awards in those programs were canceled under the directive. The cuts affected 109 grants, including 40 awarded to universities and other institutions in the eight states involved in the lawsuit.

Kelley concluded that the policy was “arbitrary and capricious” under the Administrative Procedure Act. She found that the department did not provide a workable definition for determining which programs counted as DEI and did not adequately consider the reliance of institutions and educators on the funding.

The decision does not automatically return the canceled money. Kelley said institutions or states seeking compensation for terminated grants must pursue those claims in the U.S. Court of Federal Claims, which handles monetary disputes involving the federal government.

That distinction follows an earlier U.S. Supreme Court decision. In April 2025, the court allowed the administration to continue canceling the grants while litigation proceeded, putting on hold an order that would have temporarily restored the funding.

The lawsuit was brought by a coalition led by California, Massachusetts and New Jersey. State officials said the grants were designed to address teacher shortages, strengthen training in high-need subjects and improve retention in schools that have difficulty filling positions.

The ruling carries particular significance for efforts to diversify the teaching profession. Black students remain more likely than white students to attend schools with persistent staffing shortages, while Black teachers continue to represent a much smaller share of the educator workforce than Black students represent in public-school enrollment.

Supporters of the administration’s approach argue that federal education money should not support programs that use race-based preferences or political ideology. Critics maintain that the canceled programs included lawful efforts to recruit teachers from underrepresented backgrounds and prepare educators to serve diverse classrooms.

The Education Department had not issued a public response to the ruling as of early Friday. The federal government can appeal the decision.

Sources: Reuters, Sept. 17, 2026; Associated Press, Sept. 17, 2026.

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