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Legal & Employment Guidance

Are the President's Actions About Public Schools Legal?

Attorneys weigh in on the Trump administration's recent education actions.
Published: March 27, 2025 Last Updated: April 13, 2026

Since Inauguration Day, the Trump administration has attacked public education and inclusive policies, often in direct conflict with existing law.

Here is a deeper look at the legality of the Trump administration’s actions.

View past legal updates:

April 10, 2026
March 13, 2026
February 27, 2026
February 13, 2026
January 30, 2026
January 9, 2026

Legal Rundown PDF archive to March 27, 2025


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April 10, 2026

Litigation Updates

SCOTUS Invalidates Colorado Ban on Conversion Talk Therapy for Minors

On April 2, the U.S. Supreme Court issued an 8-1 decision in Chiles v. Salazar that invalidated a Colorado law barring “conversion therapy” a practice meant to alter a minor’s gender identity or sexual orientation through “talk therapy.” The Court held that this application of the law violated the First Amendment by discriminating on the basis of viewpoint, prohibiting therapists’ speech that endeavors to change their client’s identity while permitting speech that affirms a client’s identity. Although the decision will impact state laws that prohibit conversion therapy, it addresses only talk therapy, not medical interventions. Further, the decision’s reasoning would also invalidate a state law that prohibits LGBTQ-affirming talk therapy and thus may protect LGBTQIA+ youth in hostile states.

SCOTUS Hears Birthright Citizenship Case

On April 1, the U.S. Supreme Court heard oral arguments in Trump v. Barbara, one of several cases challenging President Trump’s executive order (EO) purporting to eliminate birthright citizenship. The case reached the Supreme Court after a New Hampshire district court (like every other court to consider the EO) blocked the Administration from enforcing the order last July. After the argument, the Court is widely expected to invalidate the EO. NEA joined an amicus brief along with 18 other labor organizations in support of birthright citizenship.

District Judge Dismisses DOJ Challenge to MN In-State Tuition Policy

On March 27, a Minnesota district judge dismissed a Department of Justice (DOJ) lawsuit that challenged the state’s policy allowing undocumented students to pay in-state tuition at public colleges and universities. This is the first ruling against DOJ’s campaign to end in-state tuition for undocumented students, with lawsuits still pending in California, Illinois, and Virginia. Texas, Oklahoma, and Kentucky agreed in consent judgments to end their policies.

District Judge Blocks ED’s Demand for Admissions Data

On April 3, a Massachusetts district judge issued a preliminary injunction blocking enforcement of a new Department of Education (ED) requirement that colleges and universities collect and submit admissions data by race and sex. The requirement is purportedly to ensure compliance with the U.S. Supreme Court’s decision in Students for Fair Admission v. Harvard College. The judge found that, while ED has “the basic authority” to collect and analyze admissions data, the new requirement violated the APA because of its “rushed and chaotic” adoption, its accelerated implementation timeline, and ED’s failure to meaningfully address concerns raised in public comments. The injunction applies only to the public university systems in the 17 plaintiff states, not to public universities in the non-plaintiff states or to private colleges and universities.

State Coalition Sues USDA Over Funding Threats to School Meal Programs

On March 23, 21 states sued the Department of Agriculture (USDA), challenging new grant conditions that require recipients to certify that they will not use federal funds to “promote gender ideology” or provide “taxpayer-funded benefits” to undocumented individuals. Among other critical funding, the plaintiff states collectively risk losing at least $11.6 billion in funds to feed children through the Child Nutrition Program, which includes the National School Lunch and School Breakfast Programs.

Recent Executive Actions

Prohibiting Federal Contractors from DEI Practices

On March 26, President Trump issued an executive order (EO) requiring all federal contractors, including higher education institutions, to agree to “not engage in any racially discriminatory DEI activities” or else risk the cancellation of their contracts. Contractors must provide records to demonstrate compliance and report violations by subcontractors. The EO suggests that violations of these requirements would expose contractors to liability under the False Claims Act. Federal agencies must add this language to their contracts by April 25 and audit contractors’ compliance by July 24.

Is this Legal?

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The EO claims that the President may restrict contractors’ supposedly “inefficient” DEI activities under a statute that authorizes the President to issue directives promoting economical and efficient federal contracting. While presidents have historically used this law to impose a broad range of contractor obligations (including nondiscrimination requirements), the courts of appeals are split on whether it allows the president to issue any directive that furthers the statutory goals of economy and efficiency or confers narrower authority. Regardless, the First Amendment prohibits the government from using the False Claims Act (or any other mechanism) to penalize disfavored viewpoints.

Increasing Restrictions on Absentee Voting

On March 31, President Trump issued an EO directing the Department of Homeland Security to provide state election officials with lists of eligible voters. Election officials who provide ballots to individuals not on those lists would be subject to prosecution. The order also requires the U.S. Postal Service to promulgate regulations mandating the creation of pre‑approved lists of eligible mail‑in voters and prohibits USPS from delivering mail‑in or absentee ballots to voters not on those lists.

Is this Legal?

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The U.S. Constitution’s Elections Clause gives the states primary authority to set the “Times, Places, and Manner” of federal elections, subject to congressional override. The President has no power to make rules relating to federal elections. Three lawsuits, including one brought by a coalition of 19 states, have been filed challenging the EO on the grounds that it violates Article I of the Constitution; the First, Fifth, and Tenth Amendments; the Voting Rights Act; the Privacy Act; and the Administrative Procedure Act (APA). What’s more, Trump’s claims of widespread mail-in voting fraud have been consistently disproven, accounting, by some estimates, for only 0.000043% of total mail ballots cast.

Rescinding Resolution Agreements that Support Trans Students

On April 6, in an unprecedented move, ED announced that its Office for Civil Rights (OCR) is rescinding portions of six agreements with school districts and colleges to resolve complaints of gender-based discrimination against transgender students, in violation of Title IX.

Is this Legal?

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While ED can rescind a resolution agreement and cease enforcement, ending an agreement does not change a district or college’s obligation to comply with federal civil rights laws. As NEA explained in this guidance. Title IX protections should be understood to extend to transgender students under existing legal precedent, and ED cannot change the statute or overrule court decisions interpreting it.

Proposing Federal Education FY 2027 Budget Cuts

On April 3, the Trump Administration released a “skinny budget” proposal for the 2027 fiscal year that would reduce education funding by a net $2.3 billion, or a 3% cut. This includes $8.5 billion in cuts to around 30 K-12 programs, including 17 ESEA programs and most IDEA programs other than Part B formula grants to states, which would be consolidated into two block grant programs. The proposal also requests that Congress appropriate funding for federal career and technical education programs — which are required by statute to be run through ED — to the Department of Labor (DOL), formalizing the Administration's transfer of these programs from ED to DOL through a May 2025 interagency agreement.

Is this Legal?

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The Constitution gives the power to appropriate and spend federal money exclusively to Congress; a President’s budget proposal does not have any legal force and rarely becomes law as written. Under existing constitutional law and the Impoundment Control Act, the President is bound to implement the budget as enacted by Congress, except in very limited circumstances. Moreover, to permanently transfer programs assigned by statute to ED to DOL, Congress would have to amend the Department of Education Organization Act of 1979.

Transferring Student Loan Programs to the Treasury Department

On March 19, ED announced a new interagency agreement (IAA) to transfer the Office of Federal Student Aid (FSA), which administers the $1.7 trillion federal student loan portfolio, to the Department of Treasury (Treasury). In the first phase of the IAA, Treasury will take over debt collection on defaulted student loans, and in subsequent phases, will “assume operational responsibility” over non-defaulted loans as well as FSA’s administrative and oversight functions for federal student aid programs.

Is this Legal?

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The Higher Education Act creates FSA as a performance-based organization within ED and assigns to FSA and ED responsibility for the administration and oversight of federal student aid programs. While Treasury may have authority to collect on defaulted federal debt, ED cannot shift its administrative and oversight obligations to other agencies. Further, the FY 2026 appropriations act bans ED from transferring funds appropriated to carry out its statutory duties to other agencies. Transfers of ED funds to Treasury to implement the IAA would violate this restriction.

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March 13, 2026

Federal Litigation Updates

NEA Joins Suit Challenging Community Schools Grant Cancellations

On February 27, NEA joined a lawsuit brought by a coalition of unions, school districts, and nonprofit groups challenging the Department of Education’s (ED) discontinuation of $132 million in Full Service Community Schools grants, which support district programs to provide academic, social, and health services for students, families, and communities at high-poverty schools. The lawsuit claims that ED did not follow the legally required process to cancel the grants and that the discontinuations violated the First Amendment by targeting grants that allegedly promoted disfavored DEI activities.

SCOTUS Halts California Limits on Student LGBTQ+ Disclosure to Parents

On March 2, the U.S. Supreme Court issued an unsigned shadow-docket order in Mirabelli v. Bonta, blocking California’s policies that prohibited schools from disclosing students’ LGBTQ+ identities to their parents without the student’s consent. The Court found that these policies likely violate parents’ First Amendment right to control their children’s religious upbringing and due process right to be involved in decisions regarding their children’s gender identities. The ruling expands on last Term’s decision in Mahmoud v. Taylor, which recognized a First Amendment right for parents to opt their children out of lessons and curricular materials, including LGBTQ+ characters and topics on religious grounds.

Appeals Court Denies ED Stay in School-Based Mental Health Grant Case

On February 26, the Ninth Circuit denied ED's motion to stay a district court order in a case brought by 15 state Attorneys General, which requires the Department to reconsider its termination of 138 School-Based Mental Health grants in the plaintiff states. The order followed the district court’s final decision that the discontinuations were unlawful. The Ninth Circuit held that ED was not likely to show that the district court erred in finding the cancellations illegal and therefore must comply with its order.

Appeals Court Clears Path for Trump Anti-Union Executive Order

On February 26th, the Ninth Circuit vacated a district court’s preliminary injunction blocking a March 2025 executive order (EO) that stripped collective bargaining rights from employees of certain federal agencies on national security grounds. The court found that the union plaintiffs were unlikely to succeed on their claim that the EO unconstitutionally retaliated against them for suing the Trump Administration. NEA has also filed a lawsuit challenging the EO and won a preliminary injunction restoring the bargaining rights of educators in DoDEA schools. The government’s appeal of that preliminary injunction is pending.

District Court Allows Challenge to Dismantling of IES to Proceed

On February 25, the District of Columbia district court denied the Trump Administration’s motion to dismiss two lawsuits challenging the dismantling of ED’s Institute of Education Sciences (IES), allowing the case to move forward. The court held that the plaintiffs — organizations of education researchers and policy advocates — had plausibly alleged concrete harms and that dismantling the IES programs was unlawful.

State Litigation Updates

Kentucky Supreme Court Finds Charter School Law Unconstitutional

On February 19, Kentucky’s Supreme Court struck down the state’s charter school law, finding that the law unconstitutionally directed public funds to charter schools that do not qualify as “common schools” as defined in the state constitution. Voters had previously rejected a state constitutional amendment that would have allowed public funds to be used for charter and private schools.

WEAC Sues Wisconsin Legislature Over School Funding Formula

On February 23, the Wisconsin Education Association Council (WEAC), along with a coalition of unions, parents, districts, and advocates, filed a lawsuit alleging that the Wisconsin State Legislature has chronically underfunded the state’s public schools and thus violated its constitutional duty to provide all students with a “sound basic education.” The legislature repealed a mechanism to increase public-school funding to account for inflation in 2009, and since then, has passed laws prioritizing funding for private school vouchers and independent charter schools. The plaintiffs argue that this underfunding has forced districts to lay off educators, increase class sizes, and cut required programs and thus has caused a decline in student achievement.

Appeals Court Affirms Free Speech Rights of California Elementary Student

On March 10, the Ninth Circuit joined four other courts of appeals in affirming that elementary school students have First Amendment free speech rights at school. The unanimous opinion emphasized that, under the First Amendment, school officials must demonstrate that any interference with protected student speech was reasonably necessary to prevent disruption or protect student well-being, taking into account the age of elementary students. The case was brought on behalf of a California first-grader who was suspended from recess for sharing an allegedly offensive drawing with a classmate and reached the Ninth Circuit after a district court found that the drawing was not protected speech. The panel remanded for the district court to determine whether the first-grader’s suspension was reasonably necessary or unconstitutional.


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February 27, 2026

Recent Executive Actions

Expanding Federal Authority to Withhold Funds Over DEI Programs

On January 28, the General Services Administration (GSA) published a notice of a proposed revision to government-wide pre-award registration requirements that would require current and potential recipients of federal funding through any agency to certify that they will not: engage in disfavored DEI programs; promote the “freedom of speech and religious liberty”; transport, conceal, harbor, or otherwise assist “illegal alien[s]”; or fund, subsidize, or facilitate “violence, terrorism, or other illegal activities that threaten public safety or national security.” The certification requirement not only would allow the government to deny federal funding to entities that do not agree to these conditions, but also opens up the possibility of criminal enforcement and civil liability under the False Claims Act for recipients who complete the certification and engage in activity that the Administration determines to violate one of the conditions. The notice is open for public comment until March 30.

Is this Legal?

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This proposed certification raises a host of constitutional issues, including: viewpoint discrimination, compelled speech requirements, and infringements on religious freedom and free association in violation of the First Amendment; impermissibly vague restrictions on funding recipients in violation of the Fifth Amendment Due Process Clause; and the imposition of new conditions on federal funding not enacted by Congress in violation of the Spending Clause. Further, its anti-DEI provision relies on the Administration’s interpretation of Title VI as prohibiting programs and policies that seek to promote racial diversity and equity, which courts have consistently found to conflict with Title VI precedent. GSA’s decision to pursue a requirement with such significant effects on funding recipients through a revision to information collection requirement instead of a notice-and-comment rule may make it procedurally invalid under the Administrative Procedure Act (APA).

Offloading ED Programs to HHS and State

On February 23, the Department of Education (ED) announced two new interagency agreements (IAAs) to further offload its required programs onto other agencies. The Department of Health and Human Services (HHS) will take over administration of multiple grant programs focused on school safety, student mental health, and supporting under-funded communities, including School Based Mental Health Grants and Full-Service Community Schools Grants. The Department of State (State) will take over enforcement of a Higher Education Act requirement that colleges and universities disclose foreign gifts of $250,000 or more and accompanying management of the foreign funding reporting portal.

Is this Legal?

The Elementary and Secondary Education Act, Higher Education Act, and other laws explicitly assign ED responsibility for the programs moving to HHS and State and do not authorize ED to shift those obligations. Further, the FY 2026 appropriations act bans ED from transferring funds appropriated to carry out its statutory duties to other agencies. Transfers of ED funds to HHS or State to implement these latest IAAs would violate this restriction.

Reaching Resolution Agreements with 31 Higher Ed Institutions

On February 19, ED announced 31 resolution agreements with institutions of higher education (IHEs), in which ED found that the IHEs’ partnerships with “The Ph.D. Project,” a nonprofit that supports students of color pursuing doctoral degrees, violated Title VI and the IHEs agreed to terminate the partnerships. ED opened investigations into 45 IHEs for these partnerships last March based on its interpretation of Title VI as prohibiting disfavored DEI initiatives.

Is this Legal?

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As numerous courts have already found, including in decisions by New Hampshire and Maryland district courts concerning ED’s February 14, 2025 Dear Colleague Letter, the Trump Administration’s position that Title VI bans programs and policies promoting DEI does not square with the statutory text or Supreme Court precedent. The resolution agreements’ determinations that the IHEs’ partnerships with The Ph.D. Project violated Title VI are therefore likely unfounded.

Litigation Updates

NEA Victory: ED’s Anti-DEI Guidance Permanently Blocked

On February 18, a New Hampshire district court issued a final judgment in a lawsuit brought by NEA, ACLU, and other partners last year challenging ED’s February 14, 2025 Dear Colleague Letter and subsequent Certification Requirement that sought to restrict DEI efforts in schools and higher education institutions nationwide. The court dismissed the case without prejudice after ED conceded in a joint stipulation that the letter and certification requirement are vacated and agreed not to enforce them. ED’s concession follows a Maryland district court’s final judgment invalidating the agency actions.

SCOTUS Rejects Trump Administration’s Tariffs

On February 20, the U.S. Supreme Court ruled, in a 6-3 decision, that President Trump lacked power to impose sweeping tariffs under the International Emergency Economic Powers Act (IEEPA), the 1977 law the Administration cited to justify the policy. Chief Justice Roberts, joined by Justices Kagan, Sotomayor, Gorsuch, Barrett, and Jackson, held that IEEPA’s grant of authority for the President to “regulate . . . importation” does not allow him to impose tariffs. Justices Kavanaugh, Alito, and Thomas dissented.

California Sues ED Over Parental Notification Policy

On February 11, California filed a lawsuit challenging ED’s threat to withhold $4.9 billion in federal education funding on the grounds that a state law prohibiting mandatory disclosure of students’ gender identities violates the Family Educational Rights and Privacy Act (FERPA). ED has demanded that the state adopt a policy of affirmatively notifying parents of any changes to students’ gender identities. The state argues that its law complies with FERPA and ED’s threat to withhold funding violates the Constitution’s Spending Clause and the APA. A California district court granted a temporary restraining order prohibiting ED from withholding funds until the merits of the motion are fully resolved.

Appeals Court Allows Louisiana Ten Commandments Bill to Move Forward

On February 20, the en banc 5th Circuit vacated a Louisiana district court’s preliminary injunction blocking a state law that requires public schools to permanently display the Ten Commandments in every classroom. The unsigned opinion overturned a panel order denying the state’s motion to stay the preliminary injunction. It held that the challenge to the law was premature because classrooms have not yet posted the Ten Commandments and the courts thus cannot decide whether the displays violate the First Amendment in context. NEA and the Arkansas Education Association have filed an amicus brief in a similar case challenging Arkansas’ Ten Commandments law.


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February 13, 2026

Recent Executive Actions

Failing to Investigate Thousands of Civil Rights Cases

On February 2, the Government Accountability Office released a report examining how the Office for Civil Rights (OCR) at the Department of Education (ED) has functioned following the March 2025 RIF, which halved its workforce and cost more than $28.5 million in salaries and benefits for laid-off staff. Although OCR resolved over 7,000 of the more than 9,000 new complaints it received between March and September 2025, it dismissed 90% of the resolved cases without investigation (compared to 49%-81% dismissal rates in prior years). Meanwhile, media reports indicate OCR’s case backlog grew from around 12,000 open investigations in January 2025 to roughly 25,000 by January 2026. During that time, OCR disclosed just 177 resolution agreements (compared to 518 in 2024), none of which involved racial harassment. Likewise, none of the disclosed Title IX case resolutions involved sexual assault, sexual harassment, gender harassment, or pregnancy/parental status discrimination; instead, one quarter concerned policies permitting the inclusion of transgender students in athletics.

Is this Legal?

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OCR is required by statute to “effectuate” federal civil rights laws in ED-funded programs, and, under its regulations, must promptly investigate and resolve civil rights complaints. The few resolution agreements entered in 2025, the mounting backlog, and the high rate of dismissals without investigation show that OCR is unable to fulfill its statutory obligations in the wake of the March 2025 RIF. Multiple pending lawsuits, including a challenge by NEA and partner organizations to the dismantling of the Department of Education, contend that the Trump Administration’s gutting of OCR was unlawful.

Signing $79B Education Funding Bill Into Law

On February 3, President Trump signed the FY 2026 budget bill into law. The bill funds ED at $79 billion, rejecting the deep cuts to federal education funding proposed by the Trump Administration. The law requires ED to distribute formula grant funding to states and districts on time and to maintain sufficient staffing to fulfill its statutory responsibilities. These mandates appear to be a rebuke of ED’s withholding of billions in formula grant dollars for weeks last summer and elimination of about half of its career staff over the past year. The bill also continues a longstanding restriction prohibiting ED from transferring appropriated funds to other agencies.

Is this Legal?

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The Administration must comply with conditions Congress sets for its use of appropriated funds. As Congress’s joint explanatory statement confirms, ED cannot transfer funds appropriated to carry out ED’s statutory duties to other agencies without violating the budget bill’s ban on interagency transfers of appropriated funds. ED’s ongoing implementation of seven interagency agreements transfers funding for core programs to other agencies and is therefore unlawful.

Issuing Guidance Allowing Teacher Prayer in Public Schools

On February 5, ED issued guidance claiming that public school employees may engage in religious expression — including “visible, personal prayer” with students “during the conduct of their work.” ED interprets the U.S. Supreme Court’s 2022 decision in Kennedy v. Bremerton School District to mean that educators’ religious expression at school only violates the First Amendment if it is offered “on behalf of the school or in contexts that students cannot opt out of” or is otherwise coercive. In ED’s view, the simple fact of prayer being visible to students is not itself coercive. The move replaces ED’s 2023 guidance on religious expression in public schools, which maintained that educators may engage in private prayer during the workday, but could not do so while carrying out official duties and could not encourage or discourage students’ participation in religious activities.

Is this Legal?

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As explained in NEA’s religious expression toolkits, the First Amendment guarantees educators’ and students’ rights to private religious practice at school while also prohibiting religious coercion. Kennedy held that educators may pray at work only when off-duty and so long as they do not pressure students to participate. ED’s new guidance stretches that holding, claiming that educators may pray not just during off-duty time, but anytime they are not actively performing duties like teaching, coaching, or counseling, through which their speech could be attributed to the school district. By going beyond Kennedy, the guidance risks undermining students’ right to be free from religious coercion at school.

Litigation Updates

NEA Files Emergency Motion to Stop ICE Enforcement Near Schools

On February 12, NEA filed an emergency motion for relief in a lawsuit challenging the Trump Administration’s January 2025 rescission of a longstanding policy limiting immigration enforcement at “sensitive locations,” such as schools, hospitals, courthouses, and churches. The motion, which argues that the policy change is arbitrary and capricious under the Administrative Procedure Act (APA) and irreparably harms educators around the country, is supported by testimony from 60 teachers and health care workers from 18 states. Earlier last week, Education Minnesota and two Minnesota school districts also filed a lawsuit seeking to restore the sensitive locations policy. The complaint similarly alleges that the rescission violated the APA and its implementation at or near Minnesota public schools has caused significant disruption, including school closures and declines in attendance.

Appeals Court Vacates Injunction Blocking Anti-DEI Executive Orders

On February 6, the Fourth Circuit vacated a preliminary injunction that blocked implementation of two executive orders (EOs) targeting DEI practices in the federal government and private sectors, including higher education. While the plaintiffs lacked standing for some claims and were unlikely to succeed in showing other EO provisions were facially unconstitutional, the court left open the possibility that use of the EOs in specific enforcement actions could be unlawful. The case has been remanded to the lower court.

Academic Labor Union Challenges Trump’s “Gold Card” Executive Order

On February 3, the American Association of University Professors and several prospective visa applicants filed a lawsuit challenging Trump’s “Gold Card” visa program, which fast tracks applicants who pay $1 million under visa programs designed to admit highly talented individuals to the United States based on their merit and ability. Plaintiffs argue that the “Gold Card” program exceeds the President’s authority under the Immigration and Nationality Act by changing the statutory criteria for the impacted visa programs and violates the APA. They are seeking declaratory and injunctive relief.

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January 30, 2026

Litigation Updates

SCOTUS Hears Arguments in Transgender Student Athlete Cases

On January 13, the U.S. Supreme Court heard arguments in West Virginia v. B.P.J and Little v. Hecox, challenges by students to laws in West Virginia and Idaho that prohibit transgender girls and women from joining school sports teams that align with their gender identity. NEA filed an amicus brief in support of the students. At oral argument, the Court appeared inclined to find that the bans do not violate either Title IX or the Equal Protection Clause. A decision is expected by June.

ED Drops Appeal Over Anti-DEI Guidance Ruling

On January 21, the Department of Education (ED) withdrew its appeal of a Maryland district court’s August order striking down its February 14th anti-DEI Dear Colleague Letter and accompanying Certification Requirement. In April, the court had issued a stay blocking ED from implementing these efforts pending litigation; its August decision granted partial summary judgment for the plaintiffs and vacated the Letter and Certification Requirement. NEA brought a separate suit challenging ED’s anti-DEI moves and, in April, obtained a preliminary injunction barring their implementation at any school that employs an NEA member.

District Judge Blocks Head Start Layoffs and Anti-DEI Directive

On January 6, a Washington state district judge blocked the Department of Health and Human Services (HHS) from implementing office closures and mass layoffs in the Head Start program and requiring grantees to certify that they do not promote DEI. The court’s preliminary injunction decision found these changes were arbitrary and capricious and kept providers from complying with the law. The ruling follows a previous preliminary injunction that blocked HHS from restricting Head Start participation to verified U.S. citizens and immigrants with legal status.

District Judge Orders ED to Reevaluate TRIO Grant Cancellations

On January 16, a D.C. district judge issued a preliminary injunction vacating ED’s decisions denying or discontinuing certain TRIO grants. The court found these actions unlawful on several grounds, including that the agency improperly penalized grantees and applicants for allegedly promoting “DEI” and did not follow statutory procedures. ED now must reconsider the challenged grant determinations.

Oregon Appeals Court Affirms Dismissal of ULP Challenge to Teachers’ Strike

On January 22, the Oregon Court of Appeals affirmed the state Employment Relations Board (ERB)’s dismissal of an unfair labor practice (ULP) complaint against the Portland Association of Teachers (PAT) and the Oregon Education Association. The complaint was brought by parents seeking class damages for childcare costs and learning loss allegedly incurred during PAT’s November 2023 strike. The court held that under Oregon’s labor-relations statute, only the public employer — not third parties like parents have standing to bring a ULP complaint challenging the legality of a public-employee strike.

Recent Executive Actions Impacting Education

Transferring ED Higher Education Grants and Staff to DOL

On January 15, ED announced that it has taken new steps to implement a September interagency agreement to shift higher education program administration to the Department of Labor (DOL). Staff in the Higher Education Programs Division of ED’s Office of Postsecondary Education have been detailed to DOL, and grantees will transition to DOL's grant and payment management system. The ED-DOL agreement says DOL will administer the grant programs, while ED retains authority over budgets, program criteria and priorities, and functions like hiring.

Is this Legal?

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The Higher Education Act and other statutes explicitly assign ED responsibility for administering the programs that have now moved to DOL and do not authorize ED to shift that duty elsewhere. Moreover, the recent continuing resolution funding ED through January 2026 and the FY 2026 appropriations bill (expected to pass Congress soon) both ban ED from transferring appropriated funds without explicit authorization from Congress. These latest steps to implement ED’s interagency agreement with DOL violate both sets of restrictions.

Launching Title IX Investigations into 18 Educational Institutions

On January 14, ED announced a string of Title IX investigations into 18 K-12 and higher education entities with policies that allow transgender students to play on sports teams aligning with their gender identity. The entities under investigation include New York City Department of Education, Washington’s Tacoma Public Schools, and Hawaii State Department of Education.

Is this Legal?

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As NEA explained in this guidance, under existing legal precedent, Title IX protections should be understood to extend to transgender students. ED cannot change Title IX or overrule court decisions interpreting it. The U.S. Supreme Court is expected to decide later this year whether state laws limiting transgender athlete participation violate Title IX or the Equal Protection Clause.

Implementing New Federal Student Loan Caps

On January 30, ED published a proposed rule implementing the One Big Beautiful Bill Act’s limits on the federal student loan aid available to graduate students. Under the Act, starting in July 2026, new borrowers can take out only $20,500 per year in federal student loans for most graduate programs, but students in “professional degree” programs may borrow up to $50,000 per year. ED’s proposed rule would classify teaching, nursing, and social work degree programs, among others, as “non-professional” and therefore subject to the lower cap. The proposal is open for public comment until March 2.

Is this Legal?

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ED’s proposed rule reflects consensus reached in negotiated rulemaking under the Higher Education Act, but ED still must follow standard APA notice and comment procedures to finalize the rule. After publishing the proposal and accepting comments, ED next must consider significant comments and address them in its final rule. Failure to do so could invalidate the regulation.

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January 9, 2026

Litigation Updates

NEA Victory: Court Halts Trump Administration Effort to Close FMCS

On December 30, a New York district judge granted summary judgment vacating a new Federal Mediation and Conciliation Service (FMCS) policy limiting the kinds of labor disputes eligible for mediation. FMCS enacted the policy in response to a March Executive Order that directed Trump Administration officials to shutter the Federal Mediation and Conciliation Service (FMCS). The court ruled that the policy, which bars smaller bargaining units from pursuing mediation in labor disputes, and the resultant mass layoffs of FMCS employees, were arbitrary and capricious under the Administrative Procedure Act (APA). As a result, FMCS was ordered to reverse the reductions-in-force (RIFs). The lawsuit was brought by a coalition of unions, including NEA and the Ohio Education Association.

District Judge Rules School-Based Mental Health Grant Cancelations Unlawful

On December 19, a Washington state district judge granted summary judgement vacating the Department of Education's (ED's) discontinuations of school-based mental health grants in 16 states based on grantees’ alleged “DEI activities.” The court found that the discontinuations violated the APA because ED did not comply with regulatory procedures, provide individualized explanations for the decisions, or account for reliance interests. ED must now make new continuation decisions for each of 138 grants in the plaintiff states. The ruling builds on an October preliminary injunction that blocked many of the discontinuations, and came one week after ED awarded $208 million in new school-based mental health grants, with the condition that grantees may not use funds to promote “gender ideology” or DEI.

District Judge Blocks Federal RIFs From October 1 - January 30

On December 17, a California district judge issued a preliminary injunction barring the Trump Administration from implementing RIFs at ED and other agencies between October 1st and January 30 and directing the Administration to rescind all RIF notices issued to employees at those agencies during last fall’s government shutdown. The order forces the Administration to comply with a provision in the November 2025 Continuing Resolution that prohibits any further federal RIFs through January 30. The Administration appealed the order in late December, but withdrew its appeal without explanation on January 2.

District Judge Upholds Trump H-1B Visa Fee Proclamation

On December 23, a D.C. district judge upheld as lawful President Trump’s September 19 proclamation requiring employers to pay an additional $100,000 fee before new H-1B visa applications may be processed. On December 12, a coalition of 20 states filed a separate lawsuit in Massachusetts challenging the proclamation. An NEA analysis shows that in fiscal year 2025, over 2,300 H-1B visa holders were employed across more than 500 K–12 public school districts nationwide.

DOJ Sues Virginia Over In-State Tuition for Undocumented Students

On December 29, the Department of Justice (DOJ) sued the state of Virginia, claiming that its policy allowing undocumented students to pay in-state tuition at public colleges and universities is preempted by federal immigration laws. Virginia officials filed a joint motion siding with the federal government, a first step toward a consent judgment to end the policy. The Legal Aid Justice Center and the ACLU of Virginia filed an emergency motion to intervene on behalf of the Dream Project. This is DOJ’s seventh such challenge. Cases in California, Minnesota, Illinois, and Kentucky (where a third-party intervenor is defending the state’s policy) are pending; Texas and Oklahoma agreed in consent judgments to end their policies.

Texas AFT Sues State Over Alleged Retaliation for Educators’ Speech

On January 6, the Texas American Federation of Teachers (Texas AFT) filed a lawsuit against the Texas Education Agency, challenging its policy directing school districts to report off-duty educator speech perceived as critical of right-wing activist Charlie Kirk following his assassination. The complaint contends that the policy violates the First Amendment by retaliating against public-school employees for views expressed in their social media posts and has resulted in the firing, suspension, and discipline of AFT members. Texas AFT alleges that the directive is unconstitutionally vague and overbroad, thereby enabling arbitrary enforcement, and seeks a preliminary injunction.

Recent Executive Actions Impacting Education

Terminating $168 Million in Community Schools Grants

On December 12, the Department of Education abruptly canceled $168 million across 19 grants in 11 states and D.C. under the Full-Service Community Schools program (FSCS). The grants, which supported school-based wraparound services for students, families, and communities, were discontinued just two weeks before the grantees expected to receive their 2026 funding, on January 1st. ED claims that the canceled awards promoted disfavored “DEI activities” that the Trump Administration considers unlawful.

Is this Legal?

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Three lawsuits have been filed challenging the discontinuations. ED can only cancel or discontinue previously awarded grants through statutory and regulatory processes, and only for limited reasons that generally do not include policy or political disagreements with grantees’ planned activities. ED has not complied with these requirements, making the discontinuations unlawful. Further, as several courts have already found, Title VI precedent does not support the Administration’s claim that programs and policies promoting DEI are unlawful.

Waiving ESEA Requirements for Iowa

On January 7, ED approved the state of Iowa’s request for a waiver of statutory restrictions on its use of certain federal funds under the Elementary and Secondary Education Act (ESEA). ED’s decision allows Iowa to consolidate a small portion of its state-activities funds from four separate ESEA formula grants into a single state-level block grant instead of managing them separately. Iowa requested the waiver, which marks the first time ED has allowed a state to consolidate ESEA funds, after ED encouraged states to apply for permission to bypass statutory limits on ESEA funds in a July Dear Colleague Letter.

Is this Legal?

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The Secretary of Education has relatively broad authority under the ESEA to waive statutory and regulatory requirements, subject to important limits set forth in the law. For example, the Secretary cannot change the allocation or distribution of federal formula grants to states, school districts, or other recipients and cannot allow states to skirt the ESEA’s accountability requirements. The Iowa waiver, which applies only to ESEA funds allocated for state-level activities, appears to comply with these restrictions. In contrast, a decision by ED to grant Indiana’s pending request to convert all of its ESEA funds into a single, unrestricted block grant would likely be unlawful.

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