Federal Judge Vacates DOE Policy Canceling Diversity and Training Grants
A federal judge struck down the DOE's policy canceling diversity and educator training grants.
Why it matters: This ruling restores eligibility for $600 million in federal grants supporting DEI and educator training programs, influencing future funding decisions and legal debates on administrative authority in education policy.
- U.S. District Judge Angel Kelley vacated the DOE’s February 2025 directive on September 17, 2026.
- The directive canceled 104 of 109 grants in Teacher Quality Partnership and SEED programs, worth over $600 million.
- Judge Kelley ruled the directive violated the Administrative Procedure Act as arbitrary and capricious.
- Eight states, including California and New Jersey, sued to block the directive; earlier TROs were issued and stayed during litigation.
On September 17, 2026, U.S. District Judge Angel Kelley vacated the Department of Education’s 2025 directive entitled “Eliminating Discrimination and Fraud in Department Grant Awards,” which had led to the cancellation of 104 out of 109 grants in critical educator training and diversity programs.
The canceled grants, connected to the Teacher Quality Partnership (TQP) and Supporting Effective Educator Development (SEED) programs, totaled more than $600 million. The directive was issued under Executive Orders No. 14173 and 14190, targeting alleged discrimination and indoctrination in K-12 schooling.
Judge Kelley found that the DOE’s directive was “arbitrary and capricious and not in accordance with law,” violating the Administrative Procedure Act. She highlighted the directive’s lack of clear standards for identifying DEI programs and its failure to assess impacts on educators and students.
Eight states, including California, Massachusetts, and New Jersey, filed a lawsuit in March 2025 against the directive. A Temporary Restraining Order was initially granted to block the grant cancellations in those states but was later stayed by the Supreme Court in April 2025, allowing terminations to proceed during litigation.
In her ruling, Judge Kelley noted, “It is difficult to see how topics can be ‘anti-racis[t]’ yet simultaneously fall within the Directive’s category of ‘discriminatory’ activities.” She also emphasized the harm to thousands of teachers and teacher-trainees, underscoring the directive’s disruption to critical education pipelines.
New York Attorney General Letitia James, representing public interest in educator quality, stated, “Kids in rural and underserved communities deserve access to qualified teachers and a quality education.” The decision comes amid concerns that teacher preparation programs have declined by 35% over the past decade, with nearly 300,000 teachers leaving the profession annually.
This ruling resets the landscape for federal education funding, raising questions about the scope of administrative authority and the future of DEI programs in K-12 education.
By the numbers:
- 104 of 109 grants canceled — in TQP and SEED programs under the DOE directive
- $600 million — total funding affected by the cancelled grants
- 35% decline — in teacher preparation program completions over the last decade
- 300,000 teachers — estimated annual attrition from the teaching profession
Yes, but: The Department of Education has not yet announced if it will reinstate canceled grants or seek to appeal the ruling.
What's next: Expect ongoing legal and policy debates regarding the DOE’s funding criteria and possible administrative responses to the ruling.