The U.S. Department of Education withdrew its appeal of a federal judge’s injunction that blocked the administration’s attempt to cancel grants and seek roughly $1.2 billion from the University of California system. The decision preserves a November ruling that halted the government’s demand and returns the dispute to negotiation or further civil‑rights review. The preliminary injunction had prevented the Education Department from enforcing wide grant cancellations tied to allegations about UCLA’s handling of campus antisemitism. UC faculty groups and unions hailed the drop as a “major victory,” while the department said it may still pursue voluntary resolutions that comply with statutory rules.