Overview

• The U.S. Department of Education paused notifications for six major K-12 grant programs—totaling more than $6 billion—for after-school, summer learning, English-learner, migrant education and teacher development to align them with presidential priorities.
• States including California and Texas filed suits under the Impoundment Control Act after the Office of Management and Budget delayed disbursement without a set timeline for review.
• OMB Director Russell Vought testified that the administration is considering formal rescission requests to permanently claw back the funds if Congress does not act within 45 days.
• Nonprofits and districts warn that the funding hold could force mid-season shutdowns of programs, trigger layoffs for as many as 75 staff in some areas and jeopardize services for hundreds of thousands of low-income students.
• Local leaders from Alabama’s Gadsden City Schools to the Boys & Girls Club of Central Florida say they face budget gaps that could shutter clubs and end after-school care for families lacking alternatives.