Court Vacated Department of Education Grant Terminations

A federal judge invalidated the directive that cut $600 million in teacher preparation grant funding.

Updated on Sept. 27, 2026 in Financial Aid

Bold flat-color editorial illustration showing a polished brass teacher's bell, symbolizing the resumption of federal education grant funding. — A U.S. District Court judge vacated a Department of Education directive, allowing for the resumption of $600 million in federal teacher preparation grant competitions. AI Illustration. Upload story photo >

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The U.S. District Court for the District of Massachusetts has vacated a Department of Education directive that terminated $600 million in federal grant programs. The ruling permits the resumption of Fiscal Year 2026 grant competitions, though the recovery of previously lost funds remains uncertain.

Why it matters

The TQP and SEED grant programs were created by Congress to mitigate nationwide teacher shortages and improve educator quality. The court ruling addresses the abrupt termination of these programs, which occurred in early 2025 due to claims regarding divisive ideologies.

The Department of Education initially cut $600 million from TQP and SEED programs in February 2025, including $148 million specifically in California. In 2024, the United States reported more than 400,000 teaching positions were vacant or filled by uncertified staff.

The players

U.S. District Court for the District of Massachusetts

This federal court oversaw the lawsuit filed by state attorneys general against the Department of Education.

U.S. Department of Education

This federal agency is responsible for overseeing national education policy and grant distribution programs.

Judge Angel Kelley

She serves as the U.S. District Judge who issued the ruling to vacate the agency's termination of grant funding.

U.S. Court of Federal Claims

This court handles complex monetary claims against the United States government and will oversee potential fund recovery petitions.

The details

Judge Angel Kelley invalidated the agency directive used to terminate the grants, which had been challenged by a coalition of attorneys general from states including Massachusetts, California, New Jersey, Colorado, Illinois, Maryland, New York, and Wisconsin. While the ruling allows future grant competitions to proceed, affected programs must now navigate the U.S. Court of Federal Claims to attempt a recovery of the terminated funds.

In 2024, more than 400,000 teaching positions were vacant or uncertified.
The Department of Education terminated grants in February 2025.
Judge Angel Kelley issued the court ruling on September 26, 2026.
Fiscal Year 2026 grant competitions will move forward following the ruling.

Culture Shift

This legal challenge reflects a broader trend of state-level pushback against federal executive actions regarding educational oversight and ideology. The ruling underscores the tension between federal funding mandates and state-led efforts to protect established grant programs like the TQP and SEED.

The ruling clears the way for upcoming Fiscal Year 2026 grant cycles, which may influence funding availability for local teacher preparation programs in your state. However, individual programs that lost funding in 2025 will face a complex and lengthy legal process to recover those resources.

The takeaway

The invalidation of the funding termination directive removes a significant hurdle for future teacher preparation initiatives. Educational institutions affected by the previous cuts must now seek legal counsel to navigate the specific recovery process required by the U.S. Court of Federal Claims.