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The new directive declares that any financial aid or scholarships that consider race as a factor violate civil rights laws, a move that has garnered both support and criticism from various stakeholders. The ruling follows the Supreme Court's 2023 decision in Students for Fair Admissions v. Harvard, which struck down affirmative action in college admissions. The Department of Education asserts that this ruling extends beyond admissions, to cover all race-conscious policies, including hiring practices and scholarships.