Education Department Withdraws Appeal Against Federal Court Ruling on DEI Funding
January 21, 2026
News & Politics

Education Department Withdraws Appeal Against Federal Court Ruling on DEI Funding

The department ceases efforts to appeal a court decision that blocked federal penalties linked to diversity, equity, and inclusion programs in education institutions

Summary

The U.S. Department of Education has formally dismissed its appeal against a federal judge’s ruling that stopped threats to cut federal funding from schools and colleges based on diversity, equity, and inclusion (DEI) initiatives. The dismissal preserves an earlier court finding that such anti-DEI measures violated First Amendment rights and federal procedural requirements. The legal process began after the department issued warnings that schools maintaining DEI activities could lose federal funding, a move that was legally challenged and subsequently halted by a federal court.

Key Points

The U.S. Department of Education has withdrawn its appeal against a federal court ruling that blocked punitive actions related to DEI initiatives in schools and colleges.
A federal judge found that the department’s anti-DEI guidance violated the First Amendment and procedural federal regulations, protecting educators’ free speech rights.
The legal challenge was initiated by the American Federation of Teachers, opposing threats to withdraw federal funding from institutions engaged in diversity, equity, and inclusion practices.

In a significant development, the U.S. Department of Education has withdrawn its appeal following a federal judge's August decision that halted the Trump administration's campaign against diversity, equity, and inclusion (DEI) programs which put federal funding for schools and higher education institutions at risk. This withdrawal, officially filed in court on Wednesday, upholds the ruling that deemed the anti-DEI campaign as infringing upon First Amendment freedoms and violating established federal procedures.

The controversy stemmed from federal guidance issued by the department that warned educational institutions they faced potential loss of federal funds if they continued various practices associated with DEI efforts. These initiatives were characterized by the previous administration as excessive or discriminatory. The guidance specifically cautioned against the consideration of race in college admissions, hiring, scholarships, and other aspects of campus life, claiming such practices resulted in discrimination against white and Asian American students.

Initially, the Education Department’s approach included a “Dear Colleague Letter” disseminated to schools in February, outlining that racial preferences were impermissible. Subsequently, the department expanded its campaign by requesting K-12 schools to affirm they were not engaging in DEI programs, again threatening funding cuts for non-compliance.

The American Federation of Teachers, representing educators in this legal confrontation, challenged both the initial guidance and the subsequent requests. U.S. District Judge Stephanie Gallagher of Maryland struck down these directives, ruling that the government’s actions suppressed free speech rights of educators. Judge Gallagher noted that millions of teachers feared lawful and constructive expressions related to DEI might lead to punitive measures against themselves or their institutions.

Following the decision, the Education Department pursued an appeal, which it has now chosen to dismiss, effectively cementing the court's original stance. In response to the dismissal, Democracy Forward, a legal advocacy organization representing the plaintiffs, described the move as a positive development for public education, highlighting the growing difficulties government attorneys face when defending policies perceived as unlawful by the courts.

The withdrawal signals an end to the federal government’s attempt, under the prior administration, to curtail DEI initiatives through financial penalties, thereby securing a measure of protection for continuing diversity and inclusion efforts in American educational settings.

At this time, the Education Department has not issued any public commentary regarding the dismissal of the appeal.

Risks
  • Potential ongoing uncertainty for educational institutions regarding federal policies on diversity, equity, and inclusion programs, which could affect funding and program implementation.
  • The ruling highlights legal vulnerabilities for future federal administrative actions that seek to limit DEI initiatives, possibly influencing regulatory approaches across the education sector.
  • Educational institutions may face challenges in balancing federal compliance and DEI objectives, affecting administrative planning and potentially impacting accreditation or funding statuses.
Disclosure
This article is based entirely on factual information available from court filings, government communications, and statements from involved parties without additional analysis or speculation. No external sources or unverified data were introduced.
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