Federal Judge Rejects States’ Bid to Restore Canceled NSF Diversity Grants

A federal judge in Manhattan has rejected a lawsuit by 16 Democratic-led states seeking to force the Trump administration to reinstate hundreds of millions of dollars in canceled federal grants aimed at boosting diversity in science, technology, engineering, and math (STEM) fields.

U.S. District Judge John Cronan ruled that the states’ challenge to the National Science Foundation’s (NSF) terminated grants must be filed with the Court of Federal Claims, which handles monetary claims against the federal government. The lawsuit, filed in May, argued the administration overstepped its authority by capping research funding and cutting diversity programs mandated by Congress.

The grants, which supported women and minority participation in STEM, were canceled in April after the NSF issued a new directive stating research must “create opportunities for all Americans everywhere,” signaling a shift away from prioritizing specific demographic groups. This aligns with President Donald Trump’s broader push to remove diversity, equity, and inclusion (DEI) programs from federal agencies.

New York Attorney General Letitia James, leading the coalition, argued the policy conflicted with the National Science Foundation Act, which directs the agency to support underrepresented populations. However, Cronan found the policy did not prohibit such projects and noted the NSF continues to fund diversity initiatives.

The ruling marks a major setback for efforts to preserve federal DEI-focused research funding. The states are reviewing next steps, while the NSF declined to comment.