Civil liberties groups, the state’s largest teacher’s union, and four New Hampshire school districts have sued the state over a new law that could cut state funding to schools if they pursue diversity, equity, and inclusion initiatives.

The lawsuit, filed in the U.S. District Court in Concord on Thursday, raises two main issues: the new law’s far-reaching implications for students’ ability to learn, and the potential financial penalties for private schools, as well as public schools.

The law, enacted last month as part of the recent state budget, prohibits any DEI initiatives in schools and public agencies that seek to improve outcomes for individuals who are grouped by age, sex, gender identity, race, or disability. Only schools, however, face funding cuts if they violate the law.

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