The U.S. Department of Education has stepped back from enforcing a sweeping anti‑DEI directive after legal setbacks and sustained pressure from higher‑education groups. The agency signed a joint motion to dismiss its appeal in a lawsuit that had blocked a February “Dear Colleague” letter which threatened to yank federal funds from institutions with race‑based programs. The move leaves in place a federal judge’s injunction and marks a de‑escalation by the department, which had sought to expand enforcement across K–12 and higher education. University leaders, unions and civil‑rights advocates framed the retreat as a win for institutional autonomy and campus free‑speech protections; the dispute centered on whether the guidance unlawfully chilled protected expression and misapplied Supreme Court precedent on admissions.