The U.S. Supreme Court ruled 5-4 that President Trump can cut $783 million in funding for diversity, equity, and inclusion.
The ruling lifts a lower court order that blocked Trump’s DEI cuts to the National Institute for Health.
Justice Amy Coney Barrett sided with Justice Thomas, Justice Alito, Justice Gorsuch, and Justice Kavanaugh to grant a partial stay while Justice Roberts sided with The Chief Justice, Justice Sotomayor, Justice Kagan, and Justice Jackson would deny the application in full.
25a103_kh7p by scott.mcclallen
Justice Neil Gorsuch criticized lower-court judges for not following earlier high court orders. “All these interventions should have been unnecessary, but together they underscore a basic tenet of our judicial system: Whatever their own views, judges are duty-bound to respect 'the hierarchy of the federal court system created by the Constitution and Congress'" Gorsuch wrote.
The Trump administration aims to cut research funding for DEI objectives, gender identity, or COVID–19. It won’t award grants to researchers based on race. More than a dozen states sued over the change in March.The lawsuit challenged grant terminations under the Administrative Procedure Act. In recent months, the National Institutes of Health has aligned its funding with changed policy priorities.
The First Circuit had also refused to intervene in the case.
But a majority of the nation's top court wrote that if the government disburses its money and later wins the case, it might never recoup the money.
"The Government faces such harm here," the opinion said. "The plaintiffs do not state that they will repay grant money if the Government ultimately prevails. Moreover, the plaintiff's contention that they lack the resources to continue their resource projects without federal funding is inconsistent with the proposition that they have the resources to make the Government whole for money already spent."
“The District Court declared unlawful and vacated both the guidance and the individual terminations, and the First Circuit denied the Government’s request for a stay. Both courts treated NIH’s termination of grants and its issuance of guidance as distinct agency actions. The Government sought a stay from this Court.”
Trump's challenge of DEI funding follows a change of policies in the White House.
The District Court likely lacked jurisdiction to hear grant termination challenges, which belong in Federal Court, the ruling said.
Independent reporter Nick Sortor posted on X.
🚨 BREAKING – SUPREME COURT SIDES WITH TRUMP: Allows Trump to TERMINATE DEI and gender-based grants to the National Institutes of Health, many of which were begun under Dr. Fauci, in a 5-4 ruling
— Nick Sortor (@nicksortor) August 21, 2025
Activist judges LOSE AGAIN! 🔥
Wokeism has NO PLACE in our health system. pic.twitter.com/yqtChsR5ib
The ruling will return to the lower courts.
Earlier today, an appeals court threw out the $500 million civil fraud penalty against President Donald Trump that resulted from James’ lawsuit against him during the 2024 campaign.