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U.S. Department of Education Agrees Not to Tie Education Funds to DEI Certification

CATEGORY: Private Education Matters
CLIENT TYPE: Private Education
DATE: Mar 27, 2026

The Trump administration has agreed not to condition federal education funding on state compliance with its interpretation of diversity, equity, and inclusion (DEI) requirements, resolving a lawsuit brought by nearly 20 states in the U.S. District Court for the District of Massachusetts. In a joint motion to dismiss, the U.S. Department of Education and the plaintiff states stipulated that the challenged agency action “creates no obligation, responsibility, or condition” on the states or their education agencies. The lawsuit, filed April 25, 2025, alleged that the Department unlawfully attempted to withhold federal funds by requiring state education agencies to certify that they would not engage in certain undefined or “illegal” DEI practices, based on what the states described as vague and incorrect interpretations of Title VI of the Civil Rights Act. Title VI prohibits discrimination based on race, color, or national origin as a condition of receiving federal financial assistance.

According to the states, on April 3, 2025, the Department’s Office for Civil Rights emailed state education agencies directing them to sign and return certifications affirming that they and their local education agencies would not engage in certain DEI practices, report on whether local agencies had signed the certification and complied with the Department’s position, and develop plans to bring local agencies into alignment, all within a matter of days. The joint dismissal follows an August 2025 decision by a federal judge in Maryland vacating and setting aside the same agency directive in a separate lawsuit. The federal government subsequently withdrew its appeal of that ruling to the U.S. Court of Appeals for the Fourth Circuit on January 21.

State of New York et al. v. U.S. Dep’t of Educ. et al., No. 1:25-cv-11116, Joint Mot. to Dismiss (D. Mass. filed Feb. 6, 2026).

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