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Seventh Circuit weighs whether Education Department can cut grants tied to DEI
The Seventh Circuit heard arguments in ACT Now Coalition’s challenge to the Education Department’s decision to end its grants, after the group advanced diversity, equity and inclusion initiatives. The case tests whether the government can withdraw grant funding on that basis and adds to wider legal disputes over the Trump administration’s efforts to end DEI in government programmes.
ACT Now Coalition provides after-school programmes for students in Illinois. Its lawyer, Michael Ortega, argued that terminating the funding retaliated against the group for its viewpoint and violated the First Amendment, and highlighted the impact of losing the grants. The court heard arguments from the coalition and the Justice Department; the article does not report a ruling.
In short
- The Seventh Circuit heard ACT Now Coalition’s challenge to grant cuts.
- The group says the decision violated its First Amendment rights.
- The case concerns federal funding linked to DEI initiatives.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The government can argue that grants are public funds and that it may set programme priorities, including ending support for initiatives it considers inconsistent with its policies. If the decision applies neutral funding criteria rather than punishing a particular viewpoint, changing grants need not amount to restricting the recipient’s right to speak.
The case against
ACT Now Coalition can argue that withdrawing grants because it advanced DEI initiatives penalises its viewpoint and deters it and others from expressing or pursuing lawful ideas, in violation of the First Amendment. The loss of funding also threatens after-school services for students, strengthening the case that the decision has consequences beyond a change in government priorities.