U.S. federal judge vacates Education Department policy ending DEI-linked teacher grants

U.S. District Judge Angel Kelley ruled for eight Democratic-led states, including California. The February 2025 directive led to 109 grant terminations—more than 90% of awards under the Teacher Quality Partnership and Supporting Effective Educator Development programs—worth over $600 million.

The court found that the Department did not provide understandable criteria for deciding what counted as DEI activity and did not adequately consider the reliance interests of schools, training providers and their communities. It therefore held that the policy was arbitrary and capricious under the Administrative Procedure Act.

The court granted summary judgment to the states on their administrative-law claims, vacated the directive, granted declaratory relief and denied the federal government's cross-motion.

The ruling has an important limit: the district court said claims seeking recovery of terminated grant money belong in the U.S. Court of Federal Claims. It therefore did not automatically restore every award. The Department had not immediately commented when Reuters published its report, and the government could still appeal.