A federal judge has invalidated two Trump-era directives that threatened to strip schools and universities of federal dollars if they continued diversity, equity and inclusion initiatives. In a decision issued Thursday, U.S. District Judge Stephanie Gallagher in Maryland said the Education Department overstepped its authority and failed to follow required rule-making procedures when it warned institutions to end all “race-based decision-making” or face the loss of funding. The guidance, circulated in February and April, broadened the administration’s interpretation of the Supreme Court’s 2023 affirmative-action ruling and ordered state education agencies to certify that no DEI activities gave preference to any racial group. Gallagher, an appointee of President Donald Trump, wrote that the memos represented a “sea change” that caused educators to fear punishment for lawful conduct, and she directed the department to rescind them. The lawsuit was brought by the American Federation of Teachers and the American Sociological Association, which argued the directives chilled academic speech and violated the Administrative Procedure Act. While the Education Department said it is “disappointed” in the ruling, it noted that the decision does not affect its broader enforcement of Title VI protections against discrimination. Gallagher’s order restores funding certainty for schools that maintain DEI programs and underscores limits on the executive branch’s ability to reshape civil-rights policy without formal rule-making. The government has not indicated whether it will appeal.