President Donald Trump’s effort to defund public schools with diversity, equity, and inclusion programs faced a significant legal setback Thursday as three federal judges, including two Trump appointees, ruled against the Education Department’s controversial enforcement policy.

At the center of the litigation is a Feb. 14 “Dear Colleague” letter from Education Secretary Linda McMahon warning states and school districts that failure to eliminate race-based DEI programs could result in the loss of Title I funds, which support low-income students. Beginning this month, schools receiving federal dollars would be required to certify compliance or risk losing funding.