Ninth Circuit rules cancellation of DEI-related grants likely unconstitutional

In August 2025, the Ninth Circuit Court ruled on a significant First Amendment case involving six researchers from the University of California who were affected by federal grant cancellations tied to diversity, equity, and inclusion initiatives. These researchers had secured multi-year research grants from the Environmental Protection Agency and the National Endowment for the Humanities, which were subsequently terminated under new Executive Orders aimed at dismantling DEI programs across federal agencies. The court noted that federal agencies had cited the grants' alignment with DEI principles as a primary reason for the terminations. This decision comes in light of circumstances surrounding Executive Orders 14173 and 14151, which instruct federal agencies to remove any DEI references from considerations regarding grants and other funding allocations. The court's ruling took an important stance on viewpoint discrimination, suggesting that terminating grants on the basis of their support for DEI-related topics goes against constitutional protections of free speech. The litigation reveals underlying tensions in federal policy and the perceived suppression of certain viewpoints, particularly those advocating for DEI and environmental justice. The court emphasized that the rejection of grants in this context appeared to target ideas rather than simply a lack of national interest under the new administration's agenda, thereby suggesting broader implications for future federal funding decisions. As the case unfolds, it raises critical questions about the intersection of governmental policy and constitutional free speech rights, specifically concerning funding that aligns with progressive initiatives meant to promote diversity and inclusion.