Full Breakdown
Federal Judge Blocks DOE’s Anti-DEI Grant Cuts
By Drooid · · How we work
Court Ruling Overturns Department’s Funding Directive
On September 17, U.S. District Judge Angel Kelley ruled that the Education Department’s directive to terminate teacher-training grants tied to diversity, equity and inclusion (DEI) programs violated the Administrative Procedure Act. The decision restores eligibility for roughly $600 million in grants that had been slated for cancellation earlier in 2025. Kelley found the policy “arbitrary and capricious” for lacking clear criteria and for ignoring the impact on teachers and training pipelines.
Policy Background and Legal Challenge
The Department announced the cuts in early 2025, targeting grants under the Teacher Quality Partnership and Supporting Effective Educator Development programs. It argued the funds supported “divisive ideologies,” including DEI and social-justice activism. Eight Democratic-led states—California, Massachusetts, New Jersey, Colorado, Illinois, Maryland, New York and Wisconsin—sued, contending that the terminations would exacerbate the national teacher shortage. A prior district court order had temporarily halted the cuts, but the Supreme Court’s 6-3 decision in April 2025 allowed the Department to proceed while litigation continued.
Scope of the Canceled Funding
- $600 million in grant money was slated for termination.
- 109 grants were ordered canceled, wiping out over 90 % of awards issued through the two programs.
- 40 of the terminated grants went to universities and other institutions in the eight plaintiff states.
- The cuts threatened salaries for thousands of teachers and trainees, according to the judge’s findings.
Official Statements & Responses
Savannah Newhouse, press secretary for the Education Department, said that “taxpayer dollars should support preparing teachers for meaningful student learning, expanding the pipeline of high-quality teachers, and retaining top talent — not funding divisive ideology or racial preferences.” The Department did not immediately comment on the September ruling.
Verbatim Quotes
- “Rather than confining the Directive to actions that are traditionally understood to constitute discrimination, the record instead reflects that Defendants terminated grants with topics such as ‘acknowledging … racism’ and ‘anti-racism’—activities expressly undertaken to oppose discrimination,” — Angel Kelley, district judge
- “Taxpayer dollars should support preparing teachers for meaningful student learning, expanding the pipeline of high-quality teachers, and retaining top talent — not funding divisive ideology or racial preferences.” — Savannah Newhouse, press secretary for the Education Department
- “The Directive does not acknowledge the fact that thousands of teachers, as well as teachers in teacher-training pipelines, would be affected, upending the careers of much-needed educators,” — Angel Kelley, district judge
The ruling leaves open further litigation over recovered funds, which Kelley directed to the Court of Federal Claims. Stakeholders note that reinstating the grants could help mitigate teacher shortages and preserve programs that recruit educators to high-need schools.