By Nate Raymond
BOSTON, Sept 17 (Reuters) - A federal judge on Thursday struck down a policy that was adopted early in US President Donald Trump's administration that required the US Department of Education to terminate millions of dollars in grants funding diversity, equity, and inclusion initiatives.
US District Judge Angel Kelley in Boston ruled in favor of eight Democratic-led states that had continued to challenge the Education Department policy even after the US Supreme Court in April 2025 allowed
the administration to proceed with terminating the teacher training grants.
The judge said the policy provided no discernible criteria for what programs would be considered "DEI" and disfavored for funding. The department also failed to consider how canceling the grants would impact those who relied upon the funding, she said.
"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," Kelley wrote.
The Education Department did not immediately respond to a request for comment.
The states sued after the Education Department in February 2025 announced it was canceling more than $600 million in grants because they were used to train teachers and education agencies on "divisive ideologies," including DEI and social justice activism.
The K-12 teacher preparation grants had been issued through the Teacher Quality Partnership and Supporting Effective Educator Development grant programs.
Over 90% of grants awarded through those programs were canceled as a result of a directive to terminate ones supporting DEI, according to Thursday's ruling. The 109 terminated grants included 40 awarded to universities and other institutions in the eight states.
The states, led by California, Massachusetts and New Jersey, had previously convinced a different judge, who was originally assigned their case, to order the grants be reinstated. But the 6-3 conservative-majority Supreme Court put that order on hold.
Kelley, who was appointed by Democratic President Joe Biden, said any lawsuits trying to recover money lost as a result of those grant terminations would now need to proceed in a different, specialist court, the Court of Federal Claims.
But she said she retained the ability to determine if the original February 2025 agency directive that led to their termination complied with the Administrative Procedure Act. She concluded it did not and was arbitrary and capricious.
(Reporting by Nate Raymond in Boston; Editing by Aurora Ellis)
