Overview

• On June 30, the Department of Education paused over $6.2 billion in awards across six major K–12 grant programs with no completion date for its review of presidential priorities.
• More than 30 states and education coalitions have filed notices of intent to sue under the Impoundment Control Act following the lapse of the 45-day delay window.
• Afterschool, summer, English learner, migrant education and adult literacy programs face mid-season cancellations, closures and staff layoffs while funds remain in limbo.
• OMB Director Russell Vought said the administration is weighing a formal rescission request to permanently reclaim the paused funds, in line with its FY2026 budget that proposes eliminating these programs.
• Districts such as Bridgehampton and Uniondale in New York report losses exceeding $400,000, and the Boys & Girls Clubs warn that up to 926 locations could shut down.