DOJ drops appeal of order blocking $1.2-billion UCLA settlement

The Trump administration dropped its appeal of a major higher education case in which a federal judge blocked the government’s $1.2-billion settlement proposal to UCLA over alleged civil rights violations.

In a Wednesday filing with the 9th Circuit Court of Appeals, Department of Justice lawyers asked judges to dismiss an appeal it filed last month seeking to reverse a lower court decision. The November ruling — a major victory for UC workers who sued — had stalled the fine and a 27-page settlement document outlining administration demands to push the university ideologically rightward.

The proposal called for sweeping changes at UCLA — and by extension all of the UC system — including a ban on diversity-related scholarships, restrictions on foreign student enrollment, a declaration that transgender people do not exist, an end to gender-affirming healthcare for minors, limits on free speech and nearly unfettered sharing of personnel data with the government.

The Trump administration sent the proposal and demand for payment to UC leaders Aug. 8, about 10 days after freezing $584 million in federal research funding for the campus. The government said it suspended the funds because UCLA broke the law by using race as a factor in admissions, recognizing transgender people’s gender identities and not taking antisemitism complaints seriously during pro-Palestinian protests in 2024.

UCLA said it follows the law in regard to all of those things.

Legal backdrop

Dozens of UC faculty groups and unions sued to win the preliminary injunction; UC is not a party to the case. Officials said the system cannot afford the fine and were willing to engage in talks with the administration.

The government’s decision to drop the appeal — less than a month after filing it — does not mean it is stopping its pursuit of change at the University of California, the largest public university system to face a torrent of investigations since the White House launched a campaign against campuses it sees as too reliant on diversity, equity and inclusion programs, foreign students and leftist ideas.

The UC workers’ lawsuit will continue to be litigated in federal district court, where it is in the discovery process and eventually could move to trial.

The Department of Justice, which typically does not comment on active litigation, did not respond to a request from The Times.

UC Irvine law professor Veena Dubal, who is general counsel for plaintiff American Assn. of University Professors, celebrated this week’s development.

“The Trump administration’s decision to not appeal this preliminary injunction means that for the foreseeable future, they cannot use civil rights laws or federal funding as a cudgel to remake the UC in its ideological image,” Dubal said.

As part of an agreement to drop the appeal, the administration filed a joint request with Dubal’s clients in federal district court to modify the November injunction. On Friday, U.S. District Judge Rita F. Lin of the Northern District of California, who is overseeing the case, approved the request.

Injunction changes

The modified injunction “does not prohibit the voluntary resolution of civil rights investigations and litigations” with UC. The update also says that the government cannot “coerce the UC to agree to any of the terms” of the August settlement offer by violating the 1st Amendment or 10th Amendment when it comes to giving, withholding or ending federal grants.

The 1st Amendment protects free speech — an area in which the Trump administration has faced court losses in its campaign against campus DEI. The 10th Amendment says powers not given to the federal government by the Constitution are reserved for states and the American people.

In a statement, UC spokeswoman Rachel Zaentz said the university “remains focused on our vital work to drive innovation, advance medical breakthroughs and strengthen the nation’s long-term competitiveness.”

Zaentz, UC’s senior director of strategic and critical communications, said it “remains committed to protecting the mission, governance and academic freedom of the university.”

The Department of Justice‘s move comes as the Trump administration continues to take action against other universities. On Friday, the government sued Harvard in federal court, accusing it of refusing to provide records to prove it does not use affirmative action in admissions.

The Trump administration accused UCLA of federal civil rights violations for using race in its admissions practices — allegations UC denies. Last month the administration moved to join a federal lawsuit brought by the anti-affirmative action group Do No Harm alleging UCLA’s David Geffen School of Medicine illegally considers race in its admissions process. In documents filed in California’s Central District, the Department of Justice alleged that UCLA’s medical school uses a “systemically racist approach” to admissions that privileges Black and Latino applicants over those who are white and Asian American — charges UCLA denies.