Department of Education v. California was an emergency case over terminated education grants. The Supreme Court stayed a district court order that required the government to keep paying grant obligations while litigation continued. The majority focused on jurisdiction, sovereign immunity, and remedy, saying the government was likely to show that the APA did not allow a district court to compel this kind of monetary payment. The decision did not decide whether the grant terminations were lawful or whether the administration's stated anti-DEI rationale was valid.
The dispute began after the Trump administration terminated education-related grants it linked to DEI or other disfavored programming. Eight states, including California and Massachusetts, challenged the terminations in federal district court in Massachusetts. They argued that Congress had funded programs such as Teacher Quality Partnership and Supporting Effective Educator Development grants to address teacher shortages and training needs, and that the Department could not cancel them without lawful process. The Supreme Court's order addressed the emergency stay and forum questions, not the final merits.
Did the district court have authority under the Administrative Procedure Act to order the federal government to keep paying terminated education grants while litigation continued, or did the monetary nature of the dispute point instead to the Court of Federal Claims?
The Court stayed a district court order that had required the federal government to keep paying education-related grants. The Court said the government was likely to show the district court lacked authority under the Administrative Procedure Act to order payment of money and that the proper forum for contract-like monetary claims may be the Court of Federal Claims.
How the justices lined up in this decision.
The decision allowed the federal government to stop paying disputed teacher-training grants while litigation continued. That mattered for states, universities, nonprofits, rural districts, and teacher-residency programs that said the funds supported recruitment, training, scholarships, and staffing pipelines. The Court did not endorse the administration's anti-DEI rationale or decide the legality of the cancellations. It made a procedural ruling that shifted the immediate burden to grant recipients and states, many of which said they could not easily replace the money.
The Court issued a per curiam opinion. Chief Justice Roberts would have denied the application. Justice Kagan dissented. Justice Jackson dissented, joined by Justice Sotomayor.