US District Judge Angel Kelley in Boston on Thursday struck down the Education Department policy that terminated grants considered linked to diversity, equity and inclusion. The ruling favours eight Democratic-led states that kept litigating after the Supreme Court allowed the funding cuts to proceed in April 2025.

Kelley found that the February 2025 directive offered no discernible criteria for what counted as “DEI” and failed to weigh the impact on teachers and people in training pipelines. “The Directive does not acknowledge the fact that thousands of teachers, as well as teachers in teacher-training pipelines, would be affected,” she wrote.

The policy led to the cancellation of more than $600 million from the Teacher Quality Partnership and Supporting Effective Educator Development programmes. According to the ruling, over 90% of grants awarded through those lines were cut; of 109 terminated grants, 40 went to universities and other institutions in the eight states, led by California, Massachusetts and New Jersey.

The court held the measure arbitrary and inconsistent with the Administrative Procedure Act. Claims seeking recovery of lost money must go to the Court of Federal Claims, which handles financial claims against the federal government. Kelley retained authority only over the legality of the directive itself.

The Education Department did not immediately respond to a Reuters request for comment. The states had earlier obtained an order from a different judge reinstating the grants, later stayed by the Supreme Court’s 6-3 conservative majority.

The decision may be appealed. Striking down the directive does not automatically restore every grant at once. Practical effects will depend on further proceedings, any appeals and how the administration applies the judgment.

The case separates judicial review of the policy from the recovery of sums. Until a final ruling, the fate of the teacher-training programmes remains open.

Image: John Joseph Moakley United States Courthouse, Boston, September 2024 / 4300streetcar / Wikimedia Commons, CC BY 4.0. The building, not the hearing. Cropped to 16:9.

Source consulted: US judge strikes down Education Department's anti-DEI grant policy | Reuters; Grants and programs | U.S. Department of Education.