On January 21, 2026, the US Department of Education (ED) voluntarily dismissed its appeal in American Federation of Teachers, et al. v. US Department of Education, a case pending in the Fourth Circuit. ED’s appeal followed its unsuccessful defense of DEI-related guidance (the February 14, 2025 Dear Colleague Letter (DCL) and related FAQ), which Hunton covered in prior client alerts here and here.
Consequences of this Court Action
With ED’s appeal now withdrawn, the District Court’s ruling remains in effect. That ruling found that the DCL unconstitutionally vague and in violation of the Administrative Procedures Act (APA).
Despite the injunction against DCL enforcement, the Executive Branch has continued to pursue the Administration’s diversity-related enforcement objectives by:
- Releasing diversity-related policy statements and guidance through the Department of Justice (DOJ) and Equal Employment Opportunity Commission (EEOC);
- Repealing diversity-related guidance and executive orders from prior administrations;
- Casting doubt on disparate impact claims under Title VI;
- Rescinding federal grants inconsistent with the federal government’s current policy objectives; and
- Conducting investigations of higher education institutions.
Key Considerations for Colleges and Universities
Legal compliance in the diversity and inclusion arena requires not just familiarity with statutes and case law; it requires a deep understanding of executive actions, agency guidance, federal enforcement activities, and funding requirements. Additionally, state-level developments are critical, as a growing number of states have enacted laws restricting DEI initiatives at both public and private postsecondary institutions.
To maintain compliance, colleges and universities should:
- Routinely assess their programs to ensure alignment with both federal standards and any applicable state law limitations;
- Confirm that diversity and equity efforts are in keeping with institutional mission statements and values; and
- Monitor ongoing changes in federal enforcement priorities and guidance.
