21.01.2026

Trump Drops Appeal on DEI Funding Ruling

WASHINGTON (AP) — 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 the nation’s schools and colleges

The Trump administration has decided to halt its appeal against a federal court ruling that had blocked a controversial initiative aimed at discouraging diversity, equity, and inclusion (DEI) practices in schools and colleges across the United States. This move was made public through a court filing by the Education Department on Wednesday, which formally requested the dismissal of its appeal. As a result, a federal judge's ruling from August, which determined that the anti-DEI campaign infringed upon First Amendment rights and violated federal procedural guidelines, will remain in effect.

The legal dispute arose from federal guidance issued by the Education Department, which indicated that educational institutions could face the loss of federal funding if they continued practices that the Trump administration categorized under the DEI umbrella. This guidance was detailed in a “Dear Colleague Letter” sent to schools in February, emphasizing that race should not play a role in college admissions, hiring, scholarships, or any other areas of student and campus life. The administration argued that efforts to enhance diversity had resulted in discrimination against white and Asian American students.

Further compounding the issue, the Education Department later instructed K-12 schools to certify that they did not engage in DEI practices, reiterating its threat to cut federal funding. However, these efforts were struck down by U.S. District Judge Stephanie Gallagher in Maryland. In her ruling, Judge Gallagher noted that the guidance had created an environment that stifled teachers' free speech. She stated that millions of educators were justifiably concerned that their lawful and potentially beneficial speech could result in punishment for themselves or their institutions.

The legal challenge against the federal initiative was brought forth by the American Federation of Teachers, a prominent teachers' union advocating for the rights and welfare of educators. In response to the dismissal of the appeal, Democracy Forward, a legal advocacy firm that represented the plaintiffs, welcomed the decision as a significant victory for public education. Skye Perryman, the president and CEO of Democracy Forward, pointed out that the dismissal reflects the increasing difficulty government attorneys are facing in justifying the actions of the administration and its officials.

The decision to terminate the appeal has drawn attention to the ongoing debates surrounding DEI initiatives in educational settings. Proponents of DEI argue that these practices are essential for fostering inclusive and equitable environments, while opponents claim that they lead to reverse discrimination and undermine merit-based opportunities.

The Education Department has not yet provided official comments regarding the next steps or implications of this decision. Nonetheless, the ruling stands as a critical moment in the legal battles surrounding educational policies related to diversity and inclusion.