Education Department Settles Suit Over Chicago School Grant Cuts. Aug. 27, 2026, 2:16 PM UTC. The US Education Department has agreed to settle a lawsuit from the Chicago Board of Education alleging the Trump administration illegally cut off funding for public magnet schools despite the school system’s cooperation with federal anti-DEI probes. According to a stipulation of dismissal filed Wednesday, funds approved for two different grants will be made available by Aug. 28. The school board sued the Education Department in March in the US District Court for the Northern District of Illinois, alleging the administration abruptly cut Magnet School Assistance Program grant awards due ... ## Learn more about Bloomberg Law or Log In to keep reading:. ### See Breaking News in Context. Bloomberg Law provides trusted coverage of current events enhanced with legal analysis. ### Already a subscriber? Log in to keep reading or access research tools and resources. © 2026 Bloomberg Industry Group, Inc.