Judge vacates the Education Department directive used to cancel teacher training grants over DEI, but does not restore them
U.S. District Judge Angel Kelley ruled Sept. 17, in a suit by eight states, that the February 2025 directive was arbitrary and capricious and contrary to law. Claims over the canceled grants themselves belong in the Court of Federal Claims, she had ruled earlier.
Boston. A federal judge in Boston on Sept. 17 set aside the Education Department directive under which it canceled 104 of 109 teacher training grants in early 2025, grants held by universities, school districts and nonprofits. The ruling does not bring back the money.
U.S. District Judge Angel Kelley ruled for eight states that sued in March 2025: California, Colorado, Illinois, Maryland, Massachusetts, New Jersey, New York and Wisconsin. She vacated the directive, titled "Eliminating Discrimination and Fraud in Department Grant Awards," in its entirety as arbitrary and capricious and contrary to law, and declared it unlawful.
She found that the department never defined DEI or explained why it was discriminatory, departed from its past practice without explanation, did not consider alternatives, and ignored how much teachers, schools and students relied on the grants.
She also held that it conflicts with the grant statutes and the General Education Provisions Act, which direct grantees to support diverse teachers and students; that it skipped the notice and comment that act requires; and that the federal grant rule it cited does not allow ending grants over priorities adopted after the award.
What the directive did
Acting Secretary Denise Carter issued it on Feb. 5, 2025, to carry out two of President Trump's executive orders. It ordered a review of all grants to make sure none funded discriminatory practices, "including in the form of DEI," and the termination of those found inconsistent with the department's priorities.
Seven staff members reviewed the Teacher Quality Partnership and Supporting Effective Educator Development grants in a week, looking for terms such as social justice and antiracism. On Feb. 17, the department announced that it had terminated more than $600 million in grants to institutions and nonprofits. Among the 40 terminated in the plaintiff states were grants to TNTP, New Leaders, WestEd and the National Center for Teacher Residencies.
How far the ruling goes
She rejected the department's request to limit relief to the eight states, saying vacatur operates on the policy itself. She saw no need for a permanent injunction and did not decide the states' constitutional claims.
The terminations are another matter: in November 2025 she ruled that claims over individual grants are contract claims for the Court of Federal Claims. The department told the court it has not used the directive since June 2025, and the ruling leaves in place the priorities it adopted in September 2025 for new competitions.
The department had not said by Sept. 21 whether it would appeal, K-12 Dive reported. Its press secretary, Savannah Newhouse, told the publication that taxpayer money should prepare and retain teachers, "not funding divisive ideology or racial preferences."
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