Federal funding is at risk for schools that continue to teach critical race theory or run diversity, equity, and inclusion programs
The five largest U.S. public school districts stand to lose more than $5 billion in federal funds per year if they refuse to comply with President Donald Trump’s executive order barring progressive ideologies such as diversity, equity, and inclusion (DEI) programs in schools.
Under a Jan. 29 executive order from Trump, districts face federal funding cuts for maintaining personnel, training, or instructional functions centered on providing special or separate treatment to any employees or students based on race or gender.
The order, which cites federal civil rights laws, also prohibits curricula that suggest that the United States and its public institutions are inherently racist.
The Department of Education funds special education functions for K–12 schools and provides financial assistance to schools with large low-income student populations, while the Department of Agriculture covers free and reduced school meal programs.
New York City has the nation’s largest public school district, with about 900,000 students, followed by Los Angeles with about 500,000 students. The districts serving Chicago, Miami, and Las Vegas all exceed 300,000 students, according to their respective district websites.
New York City Public Schools, which in 2022 required administrators to reinterview for their jobs through the district Office of Diversity Equity and Inclusion, received $2.2 billion in federal grants this year, according to the district website.
In the Los Angeles Unified School District (LAUSD), $860 million comes from the federal government for the 2024–2025 academic year, the district budget states.
The LAUSD policy in November 2024 reaffirmed that it “stands in unity with all of the students, families, and staff in our school communities and embraces Diversity, Equity, and Inclusion throughout the District.”
This year, the LAUSD will spend $135 million on a Black Student Achievement Plan aimed at “eliminating educational disparities that have historically inhibited black students’ success in school systems nationwide,” according to its website and budget.
The plan will “remain until parity and beyond is achieved,” according to the district.
Parents Defending Education (PDE), a parents group, filed a complaint in 2023 with the Department of Education’s Office for Civil Rights alleging that the Black Student Achievement Plan excludes students of other races and violates the Civil Rights Act of 1964.
