Court reverses Interior conservation grant cancellations

By Pamela King | 03/12/2026 04:21 PM EDT

A judge found the department’s move was an illegal attempt to muzzle groups perceived to support diversity, equity and inclusion initiatives.

Interior Secretary Doug Burgum speaks in Scottsdale, Arizona.

Interior Secretary Doug Burgum. Rebecca Noble/AP

A federal judge has ordered the Interior Department to restore $14 million in grants awarded to groups to conduct conservation work across the country.

In a ruling issued Thursday, Chief Judge Michael McShane of the U.S. District Court for the District of Oregon sided with arguments by the conservation groups that the grant cancellations were an unlawful move to stifle activists thought to support diversity, equity and inclusion (DEI) values.

Aside from raising a justifiable First Amendment claim against Interior, McShane wrote, the groups had shown that they were likely to suffer layoffs of skilled staff, damaged professional relationships and other harms because of the grant cancellations.

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Absent a stay from a higher bench, Interior must restore the funds by March 19, wrote McShane, an Obama appointee.

“Today’s ruling allows us to get back to conserving and restoring native species and habitats in partnership with federal agencies,” said Keith Norris, executive director for the Institute for Applied Ecology, one of the groups involved in the lawsuit. “We are grateful the court has recognized the politically motivated and arbitrary nature of these illegal terminations, and we look forward to once again delivering on-the-ground conservation that supports species, ecosystems, and rural communities.”

Interior did not respond to a request for comment by publication time. The groups’ lawsuit named the department and several of its subagencies, as well as Secretary Doug Burgum, as defendants.

On the same day Interior issued the grant cancellations in September, the department coordinated with the conservative news outlet the Daily Caller to publicize cancelled grants to organizations that have espoused DEI values, the groups said in their lawsuit.

None of the grants went toward implementing or funding DEI initiatives, and one of the groups involved in the case — the Institute for Bird Populations — has never had a DEI policy, said Democracy Forward, which represented the groups in court, in a press release on McShane’s ruling.

“This case demonstrates the administration’s haphazard rush to punish people and organizations who may not align with the president’s political views. Interior’s actions violate the First Amendment and betray foundational principles of our democracy. Democracy Forward is honored to represent our clients to stop the Trump-Vance administration from threatening the important conservation work throughout the nation,” said Cortney Robinson Henderson, senior counsel at Democracy Forward.