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Fostering Diverse Schools Demonstration Grants

In fall 2025, the U.S. Department of Education’s (Department) Office of Planning, Evaluation, and Policy Development sent a Notice of Non-Continuation of Grant Award for the Fostering Diverse Schools Demonstration Grants (FDS) program, which launched in 2023. This amounts to over $25 million in discontinued funds for the recipients, including public school districts in Miami and New York City.

The FDS program was a discretionary grant program offered to Local Educational Agencies (LEAs) and State Educational Agencies (SEAs) to implement school diversity plans for preschool through grade 12. As stated on the Department’s website, the goal of the FDS program was to “help build the capacity of LEAs to meet the needs of students. . . by increasing access to and equity in diverse and inclusive learning environments.”

The Notice of Non-Continuation of Grant Award states that the FDS program “is no longer consistent with the continuation requirements for multiyear projects under 34 C.F.R § 75.253” because the “Department has determined that continuation of this program is not in the best interest of the Federal Government.” The funds allocated to the FDS program will instead be used for the School-Based Mental Health Services Grant Program. Furthermore, the Department stated that it will not use its discretionary authority to offer a no-cost extension to the FDS program. All unobligated funds must be promptly refunded.

What this means to you

This action reflects the Trump Administration’s stated directive to reduce or eliminate diversity, equity, and inclusion (DEI) initiatives across the federal government. The FDS program is one of many Biden-era DEI programs that have been discontinued since President Trump took office in 2025 (though a small number of programs have been judicially reinstated). As a result, organizations that rely on federal funding to support DEI initiatives may face a heightened risk of losing discretionary funds as the Administration continues to review and discontinue such programs.