Trump administration drops appeal in case blocking educational funding cuts for DEI programs

The White House dropped its appeal against a federal ruling that prevented the Department of Education from making funding-related threats to universities over diversity, equity, and inclusion initiatives on Wednesday.

The Education Department’s dismissal follows a year-long federal campaign against the inclusion of DEI in university programs. Penn previously scrubbed diversity references across all its webpages and revised longstanding policies in accordance with an executive order from 1968 Wharton graduate and President Donald Trump.

In a statement to The Daily Pennsylvanian, Skye Perryman — president and CEO of Democracy Forward, a legal advocacy group that represented the plaintiffs — wrote that the dismissal was a “welcome relief and a meaningful win” for educational institutions.

“Today’s dismissal confirms what the data shows: government attorneys are having an increasingly difficult time defending the lawlessness of the president and his cabinet,” he wrote. “And, when people show up and resist, they win.” 

The initial threat came as part of a “Dear Colleague” letter in February 2025, in which the Education Department expanded its interpretation of a Supreme Court case that struck down affirmative action — applying the ruling not only to admissions but also to academic programs. At the time, universities had 14 days to comply with the new requirements in order to receive further federal funding.

In August 2025, a United States District Court struck down the letter, ruling that the Education Department’s regulations caused “millions of educators to reasonably fear that their lawful, and even beneficial, speech might cause them or their schools to be punished.”

In a statement to the DP, Harold Jordan — the senior education equity coordinator at the American Civil Liberties Union of Pennsylvania — wrote that “three separate federal courts have recognized that the department’s demands are unconstitutional and an arbitrary attempt to regulate public education.”

Jordan added that “this administration’s efforts to malign and chill educational programs that benefit students and recognize their diversity cannot stand.”

Penn initially revised its diversity policies last February, leading to widespread criticism from local lawmakers and community members. The University also scrubbed several staff titles that included references to DEI in accordance with the executive order. 

In August 2025, the Wharton School renamed its DEI concentration and major to “Leading Across Differences” and removed various courses related to inclusivity from the list of applicable credits. 

A State Department memo later stated that Penn showed “no evidence of DEI in hiring.” In December 2025, Penn’s University Council approved an amendment to its bylaws renaming its Committee on Diversity and Equity.

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