Trump Administration Drops Appeal Over School DEI Funding Block

The United States Department of Education dismissed its legal appeal on January 21, 2026, abandoning an effort to withhold federal funding from K-12 schools and colleges practicing diversity, equity, and inclusion (DEI). The move leaves in place an August ruling by U.S. District Judge Stephanie Gallagher, who found that the administration's guidance violated the First Amendment and federal procedural rules.

The dispute centered on February 2025 "Dear Colleague Letters" that warned institutions against considering race in admissions, hiring, and scholarships, and required K-12 schools to certify they did not practice DEI. Judge Gallagher ruled the directive engaged in "textbook viewpoint discrimination" regarding the teaching of systemic racism and stifled teachers' free speech. The legal challenge was brought by a coalition including the American Federation of Teachers, the American Sociological Association, and Democracy Forward.

Despite the dismissal, the Department of Education maintains it retains full authority under Title VI of the Civil Rights Act of 1964 to target impermissible DEI initiatives. This follows a broader campaign by the administration that included 45 investigations into DEI programs and the withholding of funds from institutions such as Harvard and Northwestern. Educators reported that the year-long campaign caused significant disruption, leading some schools to remove DEI terminology from their websites.