Overview

• Twenty-four states and the District of Columbia filed suit in federal court in Providence on July 14 to force release of $6.8 billion in K–12 grants paused since June 30.
• Plaintiffs contend the administration violated the Impoundment Control Act and Congress’s power of the purse by withholding appropriated funds without required notification or procedures.
• The freeze affects six major grant streams, including after-school care, summer learning, migrant education, English acquisition, teacher training and adult literacy, leaving districts with sudden budget shortfalls.
• OMB Director Russell Vought and Education Secretary Linda McMahon cite an “ongoing programmatic review” over alleged misuse of funds to “subsidize a radical leftwing agenda,” with no timeline for completion.
• The lawsuit is the latest in a broader legal battle over executive spending authority, following earlier freezes on teacher-training and pandemic relief grants.