The ruling says the Education Department failed to follow required procedures, but it does not automatically restore the canceled grants.
A federal judge has struck down the U.S. Department of Education policy used to cancel more than $600 million in teacher-training grants.
Judge finds policy arbitrary and capricious
U.S. District Judge Angel Kelley ruled that the February 2025 directive violated the Administrative Procedure Act because it was arbitrary and capricious.
The Education Department said the grants supported diversity, equity and inclusion initiatives and other “divisive ideologies” that were inconsistent with the administration’s priorities. The cancellations affected more than 100 programs operating under the Teacher Quality Partnership and Supporting Effective Educator Development initiatives.
Eight states challenged the cuts
Eight Democratic-led states challenged the policy, arguing that the canceled programs trained teachers for high-need subjects and schools while helping districts address shortages and improve retention.
Kelley found that the department did not provide adequate criteria for determining which programs should lose funding. She also said officials failed to use the required public notice-and-comment process and did not sufficiently consider how states, universities, educators and students had relied on the grants.
Canceled money is not automatically restored
The Supreme Court previously allowed the grant cancellations to remain in effect while the litigation proceeded.
Kelley’s ruling invalidates the department’s directive but does not automatically return the canceled funds. Institutions seeking compensation will need to pursue their claims in the U.S. Court of Federal Claims.
The Education Department had not issued a response to the ruling as of Friday, according to Associated Press and Reuters reporting.
