The U.S. Department of Education withdrew its appeal of a federal court order that blocked guidance threatening to cut federal funding from schools and colleges for maintaining DEI programs. The department’s move leaves in place an August ruling that found the guidance violated the First Amendment and federal procedural rules. Plaintiffs, including the American Federation of Teachers, hailed the dismissal as a win for academic freedom. The guidance had asked K–12 schools and higher ed institutions to certify they did not practice DEI, and the district court found it chilled teachers’ speech and lacked necessary procedural safeguards. The administration offered no public reason for dropping the appeal, but the decision reduces immediate legal pressure on institutions that refused to alter campus programs under the threat of funding loss.