The Lyndon Baines Johnson Department of Education Building pictured on Nov. 25, 2024. (Photo by Shauneen Miranda/States Newsroom)

WASHINGTON — A federal appeals court late Wednesday upheld a lower court’s order requiring the U.S. Education Department to reinstate more than 1,300 fired employees and blocking an executive order to dismantle the department and a directive to transfer some services to other federal agencies.

The ruling from a three-judge panel in the United States Court of Appeals for the 1st Circuit marks a setback for President Donald Trump’s education policy agenda that includes transferring the federal student loan portfolio and special education services out of the Education Department on the way to closing the department entirely.

The panel kept in place a preliminary

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