Law & Courts

A New Twist in the Legal Battle Over Trump’s Cancellation of Teacher-Prep Grants

By Brooke Schultz — November 13, 2025 4 min read
Instructional coach Kristi Tucker posts notes to the board during a team meeting at Ford Elementary School in Laurens, S.C., on March 10, 2025.
  • Save to favorites
  • Print

A federal judge agreed with the Trump administration that she can’t order the restoration of millions of dollars in funding for teacher-training grants the administration prematurely cut earlier this year. But, the judge concluded, she retains the ability to decide if the administration broke the law in terminating them.

U.S. District Judge Angel Kelley, based in Massachusetts, decided Thursday that she would hear the case from eight states challenging the U.S. Department of Education’s termination of millions of dollars in grant funding that supported teacher-training programs, but agreed the restoration of funding belonged in the hands of a different federal court.

It’s the latest twist in a monthslong legal battle over the cancellation of these grants, which happened in February in the first month of the new Trump administration. A judge temporarily restored them before the U.S. Supreme Court intervened and said the administration could move forward with the grant terminations while the underlying legal battle played out. Kelley’s Thursday ruling is the latest development in that lawsuit.

Kelley’s ruling is also another example of the fine line courts are walking as President Donald Trump’s administration draws dozens of lawsuits challenging the president’s efforts to cut off funding to programs he doesn’t support. Plaintiffs in the numerous suits challenging the sudden termination of federal funding have gone to the courts seeking the restoration of grant awards. But they have seen their options for relief narrow, after a Supreme Court decision effectively pushed such complaints outside of the main federal court system to a different federal court, the Court of Federal Claims, that offers more limited relief.

Kelley, an appointee of former President Joe Biden, concluded that the question of whether to restore the individual canceled teacher-training grants—which fell under two congressionally authorized programs—lies in the federal claims court. But she contended in her ruling that she retains the ability to rule on the legality of the Trump administration’s terminations.

“When all is said and done, grants to fund certain educational programs were terminated. Today’s holding indicates this court lacks any power to bring these grants back. However, plaintiffs are not without remedy,” she wrote in her 36-page opinion, going on to say that if she found the government’s actions unlawful, “the grantees in plaintiff states can file suit in the Court of Federal Claims to request their money damages under the contract.”

The Court of Federal Claims provides less sweeping relief for plaintiffs, and grantees who are successful can only recoup monetary damages rather than have contracts and grants fully reinstated. It’s a more difficult road for plaintiffs to go down, with a heavier burden of proof for lesser reward, experts have said.

And that court has been a linchpin of the Trump administration’s legal arguments as it defends itself against lawsuits from school districts, universities, states, and others over funding terminations.

As district court judges have sided with plaintiffs and ordered the Education Department to restore funds, the Trump administration has pursued appeals to higher courts and the Supreme Court, which have more frequently sided with the president.

See Also

Vector illustration of a man in a suit with flashlight looking into hole in the shape of a dollar sign.
DigitalVision Vectors
Law & Courts Schools Sue Trump, But It's Getting Harder for Them to Recoup Money
Brooke Schultz, September 10, 2025
7 min read

At the heart of this case are more than 40 teacher-training programs in the eight plaintiff states, with grant awards totaling more than $250 million. The Education Department cited an emphasis on diversity, equity, and inclusion when it ended the grants in February.

The grant awards have been tied up in the courts for months after appeals and the Supreme Court’s intervention. Another district court judge originally halted the department’s termination of the grants through a temporary order. But the Trump administration took the issue to an appeals court and then the Supreme Court, which ultimately sided with the president. The temporary block was lifted, and the Trump administration moved to have the case transferred to federal claims court.

The eight states amended their initial complaint, maintaining that there had been regulatory and constitutional violations that the district court could rule on.

The eight states, all with Democratic attorneys general, are California, Colorado, Illinois, Maryland, Massachusetts, New Jersey, New York, and Wisconsin.

Kelley was swayed, arguing that the new assertions in the updated complaint warrant her court’s deliberation.

“As it turns out, this case extends well beyond that single dispute. Specifically, this case requires this court to identify, untangle, and apply precedent. Faced with several Supreme Court … opinions and conflicting persuasive authority, this court grapples with a contested issue: does this case belong in this court or the Court of Federal Claims?” she wrote. “... This court holds it belongs in both.”

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Artificial Intelligence Webinar
Managing AI in Schools: Practical Strategies for Districts
How should districts govern AI in schools? Learn practical strategies for policies, safety, transparency, as well as responsible adoption.
Content provided by Lightspeed Systems
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Reading & Literacy Webinar
Unlocking Success for Struggling Adolescent Readers
The Science of Reading transformed K-3 literacy. Now it's time to extend that focus to students in grades 6 through 12.
Content provided by STARI
Jobs Virtual Career Fair for Teachers and K-12 Staff
Find teaching jobs and K-12 education jubs at the EdWeek Top School Jobs virtual career fair.

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Law & Courts Ed. Dept. Hasn't Complied With Order to Restore Civil Rights Staff, Judge Says
The judge also said a high court ruling allowing layoffs at the Education Department shouldn't affect a separate case on agency cutbacks.
4 min read
This is the Lyndon Baines Johnson Department of Education Building in Washington, D.C., on Monday, May 5, 2025.
The Lyndon Baines Johnson Department of Education Building in Washington is shown on May 5, 2025. A federal judge who ordered the department to restore laid-off staffers to its office for civil rights says the agency hasn't "substantially complied" with his order.
Gene J. Puskar/AP
Law & Courts Appeals Court Sides With School in ‘Come and Take It’ Gun Hat Dispute
A full federal appeals court declined to reconsider a panel's decision backing administrators who required a student to remove her gun hat.
4 min read
Seen is an image of the hat that was included in the complaint.
Seen is the “Come and take it” hat, featuring an image of an AR-15 style rifle, that was at the center of the First Amendment lawsuit <i>C.S.</i> v. <i>McCrumb</i>.
U.S. District Court Eastern District of Michigan Southern Division
Law & Courts Federal Appeals Court Ruling Allows DOGE Access to Education Department Data
A federal appeals court ruled for the Trump administration in a case brought by the American Federation of Teachers and other plaintiffs.
3 min read
The headquarters of the U.S. Department of Education pictured on March 12, 2025, in Washington.
The headquarters of the U.S. Department of Education pictured on March 12, 2025, in Washington. A federal appeals court has now cleared a White House efficiency unit to resume accessing the agency’s records as part of a disputed data-review effort.
Mark Schiefelbein/AP
Law & Courts Judge Blocks Arkansas Law Requiring Ten Commandments Displays in Schools
A federal judge blocked an Arkansas law requiring Ten Commandments displays in schools. The law is one of three being challenged nationwide.
6 min read
A copy of the Ten Commandments is posted along with other historical documents in a hallway of the Georgia Capitol, Thursday, June 20, 2024, in Atlanta. Civil liberties groups filed a lawsuit Monday, June 24, challenging Louisiana’s new law that requires the Ten Commandments to be displayed in every public school classroom.
A copy of the Ten Commandments is posted along with other historical documents in a hallway of the Georgia Capitol on June 20, 2024, in Atlanta. A judge on Aug. 4 blocked a new Arkansas law requiring a Ten Commandments display in public school classrooms in four districts in the state. Similar laws in Louisiana and Texas are also being challenged in courts.
John Bazemore/AP