A judge blocked Trump’s school funding threat, and the administration just made an unexpected move

The Trump administration has withdrawn its appeal of a federal ruling that blocked the White House from cutting billions of dollars in education funding tied to Diversity, Equity, and Inclusion programs. The move leaves in place a court decision that stopped the administration from penalizing schools and states that refused to certify the absence of D.E.I. initiatives. The development was first reported by The New York Times.

The dispute stemmed from an effort by the administration to require schools and states to sign documents affirming they did not operate D.E.I. programs or risk losing federal education funding. Education groups quickly challenged the policy, arguing it exceeded executive authority and violated constitutional protections. Their lawsuit put the policy on hold before any funding cuts could take effect.

In August, U.S. District Judge Stephanie Gallagher of Maryland ruled against the administration, finding that it had failed to follow proper legal procedures when attempting to withhold the funds. Gallagher also concluded that the policy raised serious First Amendment concerns by threatening classroom speech and academic decision-making. That ruling remained in effect while the administration initially pursued an appeal.

The appeal withdrawal leaves the original ruling intact

The lawsuit was brought by a coalition that included the American Federation of Teachers, the American Sociological Association, and a school district in Eugene, Oregon. A.F.T. President Randi Weingarten described the case as the most significant among more than 20 lawsuits her union and partner groups have filed against the administration during President Trump’s second term. She said the decision reinforced limits on executive power in education policy.

Weingarten argued that the administration could not use executive action to dismantle long-standing civil rights protections in education. She pointed to decades-old laws designed to prevent racial discrimination in schools, saying those protections could not be undone without congressional action.

Throughout the case, the administration maintained that D.E.I. programs violate Title VI of the Civil Rights Act. Officials argued that race-based discussion groups, scholarships, or mentorship programs unlawfully segregate students and perpetuate racial stereotypes. The White House also claimed that the Supreme Court’s 2023 decision overturning affirmative action in college admissions rendered all race-conscious education programs illegal.

Judge Gallagher rejected that interpretation in her August ruling, writing that the affirmative action decision “certainly does not proscribe any particular classroom speech, or relate at all to curricular choices.” Other federal judges considering similar challenges have also declined to adopt the administration’s broad reading of the Supreme Court decision.

Although the funding threat tied to this case is no longer active, the administration has continued to pursue other avenues to challenge diversity-focused initiatives. The Department of Education is investigating Chicago Public Schools’ Black Student Success Plan, in the middle of aggressive ICE enforcement actions. The plan seeks to recruit more Black teachers and increase Black student enrollment in advanced coursework, and the administration has argued that such efforts disadvantage students of other races.

At the higher education level, the White House has reached settlements with universities accused of antisemitism that included provisions limiting D.E.I. programs. Trump has also publicly criticized his own team during a White House briefing meltdown.

The administration did not explain why it withdrew the appeal, and the Department of Education did not respond to requests for comment. With the appeal dropped, Judge Gallagher’s ruling stands, permanently blocking the specific effort to tie federal school funding to the elimination of D.E.I. programs.