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States Secure Deals Preserving Billions in Federal School Funds After DEI Certification Rule Is Vacated

The deal follows a federal court decision vacating the Education Department’s Title VI certification demand tied to diversity programs.

Overview

  • California Attorney General Rob Bonta announced an agreement that permanently blocks conditions on $4.9 billion in annual federal education aid to the state.
  • Illinois Attorney General Kwame Raoul said a similar agreement protects nearly $1.4 billion a year for Illinois, and Minnesota Attorney General Keith Ellison reported more than $530 million secured for Minnesota.
  • A coalition of 19 states and the District of Columbia joined the resolution, which the administration accepted after setbacks in related litigation.
  • The settlements follow AFT v. Department of Education, in which a Maryland federal court vacated the April 3, 2025 certification requirement, and the administration withdrew its appeal in January.
  • States had sued after the department warned funds could be withheld unless agencies affirmed a new Title VI interpretation, arguing violations of spending and administrative law, and the protected aid supports services for low-income students, special education, English learners, teacher training, and supports for foster and unhoused students.