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Trump Administration Drops DEI Funding Appeal

Published 22 January 2026

The Trump administration has withdrawn its appeal of a federal court ruling that blocked efforts to withhold billions of dollars in federal funding from schools and colleges implementing diversity, equity and inclusion programs. The U.S. Department of Education filed the dismissal on Wednesday, leaving intact an August decision by U.S. District Judge Stephanie Gallagher in Maryland.

The case stemmed from guidance issued by the Education Department last February in a "Dear Colleague" letter to educational institutions. The letter warned that schools and colleges could lose federal money if they considered race in areas such as college admissions, hiring, scholarships and other aspects of student life. It argued that such practices, often grouped under diversity, equity and inclusion initiatives, had resulted in discrimination against white and Asian American students. In a follow-up, the department required K-12 schools to certify they did not engage in DEI practices, again tying compliance to funding eligibility.

Education advocates challenged the guidance in federal court, contending it violated civil rights protections and procedural requirements. The lawsuit was filed by the...

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