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On September 17, U.S. District Judge Angel Kelley vacated the Education Department's February 2025 directive that led to the termination of more than 90% of existing Teacher Quality Partnership and Supporting Effective Educator Development grants. The court found the directive arbitrary and capricious and inconsistent with federal law. The ruling leaves the statutory framework for both programs in place, including the FY2026 competitions now moving toward award decisions.

For vendors serving teacher preparation, professional learning, certification, coaching, and workforce development, the ruling improves the outlook for programs built around TQP and SEED funding. Recovery of the cancelled awards remains a separate process, however, and affected grantees seeking monetary relief would need to pursue those claims in the Court of Federal Claims.

This week’s deep dive covers:

  1. The ruling removes a barrier, while cancelled grants remain uncertain

  2. New awards may generate demand sooner than recovered grants

  3. Federal grant exposure becomes part of account strategy

1. The ruling removes a barrier, while cancelled grants remain uncertain

The February 2025 directive had broad consequences for the teacher-development market. Within two weeks of its issuance, the Department terminated more than 100 TQP and SEED grants supporting universities, districts, nonprofits, residencies, certification pathways, professional development, and school leadership programs. The September ruling vacates the directive that drove those cancellations.

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