The U.S. Department of Education moved to dismiss its appeal of a federal court ruling that struck down guidance threatening to withdraw federal funds from schools over diversity, equity and inclusion (DEI) practices. The original guidance had told institutions they risked losing funding for a broad set of DEI programs; a federal judge found the effort violated the First Amendment and required procedures. The administration’s decision leaves the district-court injunction in place and signals a temporary rollback of an aggressive federal campaign to police campus DEI. Plaintiffs and education advocates hailed the move as a win for academic freedom and institutional stability; the litigation remains a focal point for higher-ed legal strategy around federal oversight and free-speech claims.