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2d ago

GAO Finds HHS Violated Impoundment Control Act in Head Start Funding Delays

It highlights conflicts over spending authority by documenting months of withheld payments that endangered services for low-income families.

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Overview

  • The Government Accountability Office concluded on July 23 that the Department of Health and Human Services infringed the 1974 Impoundment Control Act by slowing disbursement of congressionally appropriated Head Start funding between Jan. 20 and April 15, 2025.
  • The watchdog noted disbursements dropped sharply compared with the same period in fiscal 2024 after HHS removed public disbursement schedules and withheld obligational data requested by GAO.
  • At one point, Democrats on the House and Senate Appropriations Committees documented that $943 million in Head Start funds was frozen, jeopardizing services at dozens of centers across 27 states.
  • HHS disputes the GAO finding, maintains it did not impound Head Start funds and has pledged to submit a formal response for inclusion in an updated report.
  • Funding deliveries returned to normal after April 25 and Congress approved a $9 billion rescissions package to realign appropriations and shore up program stability.