Trump Administration Abandons Appeal Against DEI Funding Threat Ruling
Trump Admin Drops Appeal Over Anti-DEI School Funding Threat

The Trump administration has formally abandoned its legal appeal against a federal court ruling that halted its controversial campaign targeting diversity, equity, and inclusion initiatives in American K-12 schools and universities. This significant development, confirmed by an Education Department court filing on Wednesday 21st January 2026, means that an August ruling by a federal judge will now stand unchallenged.

Court Ruling Found Anti-DEI Effort Unlawful

The original federal court decision found that the administration's anti-DEI effort violated both the First Amendment and established federal procedural rules. The dispute originated from federal guidance issued by the Republican administration, which warned educational institutions that they risked losing crucial federal funding if they maintained practices labelled under the diversity, equity, and inclusion umbrella.

Controversial 'Dear Colleague Letter'

The anti-DEI warning was initially disseminated in a 'Dear Colleague Letter' to schools last February. This controversial memo asserted that race should not be a factor in college admissions, hiring decisions, scholarship allocations, or what it described as "all other aspects of student, academic, and campus life." Furthermore, the document claimed that efforts to boost diversity had resulted in what it characterised as discrimination against white and Asian American students.

Subsequently, the Education Department requested that K-12 schools formally certify their non-engagement in DEI practices, reiterating the threat of federal funding cuts for those institutions that failed to comply with this directive.

Federal Judge's Landmark Decision

Both these directives were ultimately struck down by U.S. District Judge Stephanie Gallagher in Maryland. In her comprehensive judgment, she concluded that the guidance unlawfully suppressed teachers' free speech rights, "causing millions of educators to reasonably fear that their lawful, and even beneficial, speech might cause them or their schools to be punished." The original legal challenge was brought forward by the American Federation of Teachers, representing educators across the nation.

Legal Advocacy Group Hails Victory

Democracy Forward, the legal advocacy firm representing the plaintiffs in this case, hailed the administration's decision to drop the appeal as "a welcome relief and a meaningful win for public education." Skye Perryman, the group's president and CEO, added significant commentary, stating: "Today's dismissal confirms what the data shows: government attorneys are having an increasingly difficult time defending the lawlessness of the president and his cabinet."

The Education Department offered no immediate comment regarding its decision to withdraw the appeal, leaving legal observers to analyse the implications of this strategic retreat. This development represents a substantial victory for advocates of diversity initiatives in educational settings and establishes important legal precedents regarding government intervention in campus policies.