Judge Limits Trump’s Ability to Withhold School Funds Over DEI

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A federal judge has restricted the Trump administration’s ability to withhold federal funds from public schools and universities that continue implementing diversity, equity, and inclusion (DEI) programs. The ruling, issued on April 24, 2025, blocks a policy from the U.S. Department of Education that threatened funding cuts for institutions engaging in DEI initiatives, which the administration argued were discriminatory.

The policy was introduced in February 2025, and targeted schools that promoted DEI programs, claiming that such practices violated civil rights laws. The Department of Education issued a directive that schools must comply with the federal government’s interpretation of nondiscrimination laws or risk losing funding.

However, the policy faced strong opposition, and multiple lawsuits were filed by civil rights groups and teachers’ unions, arguing that the policy was unconstitutional. Judge Landya McCafferty of New Hampshire ruled that the policy was overly vague and violated free speech protections. Similarly, Judge Stephanie Gallagher of Maryland found that the Department of Education did not have the legal authority to enforce such a policy under the Department of Education Organization Act. A judge in Washington, D.C., issued an injunction halting the policy’s enforcement as well.

This legal setback represents a significant blow to the administration’s effort to limit DEI programming in education, which has been a key issue in the political and cultural debates surrounding race and inclusion. The decision is a victory for advocates of DEI, who argue that such programs are essential for fostering diversity in higher education and ensuring equal opportunities for all students.

While the ruling prevents immediate enforcement of the policy, the Department of Education has signaled its intention to appeal the decision. As the case progresses, its outcome could set important legal precedents for future attempts to regulate DEI initiatives in educational institutions.

Legal Insider