U.S. District Judge Stephanie Gallagher has ruled against the U.S. Department of Education (ED), preventing the agency from linking federal funding to the rollback of diversity, equity, and inclusion (DEI) programs. In her decision, Gallagher found that two departmental memos violated procedural rules and posed a threat to First Amendment rights. The ruling was welcomed by unions and academics who worry about the chilling effect on race-focused initiatives.
“The administration is entitled to express its viewpoints and to promulgate policies aligned with those viewpoints,” Gallagher wrote. “But it must do so within the procedural bounds Congress has outlined. And it may not do so at the expense of constitutional rights.”
She emphasized that “the regulation of speech cannot be done casually,” warning that the administration’s shift in policy has created widespread concern among educators. According to Gallagher, the Department’s actions “initiated a sea change in how the Department of Education regulates educational practices and classroom conduct, causing millions of educators to reasonably fear that their lawful, and even beneficial, speech might cause them or their schools to be punished.”
The ED’s memos had directed schools to end “race-based decision-making” or risk losing funding and even face False Claims Act liability. Several courts had already paused the policy, and Gallagher’s ruling now declares it unlawful.
The lawsuit was filed by the American Federation of Teachers and the American Sociological Association, who argued the guidance imposed overly broad and unsupported restrictions on schools.
American Federation of Teachers President Randi Weingarten praised the decision, saying: “The court agreed that this vague and clearly unconstitutional requirement is a grave attack on students, our profession, honest history, and knowledge itself.”
In response, the ED expressed disappointment but insisted that Title VI enforcement would continue. Officials warned that certain race-centered initiatives may run afoul of Title VI by segregating students or relying on stereotypes. The administration is expected to appeal.
