$84 Million in Community Schools Grants Still Frozen as Lawsuits Mount
March 5, 2026 · 2 min read
Jared Klein
The U.S. Department of Education has partially restored community schools funding in Illinois, but 16 grants collectively worth at least $84 million remain discontinued, leaving school districts across the country scrambling.
The department agreed during a federal court hearing in early March to release $6 million in carryover funds to ACT Now Illinois through June 30. Idaho's $28 million grant was restored earlier. That still leaves the vast majority of the original $168 million in terminated Full-Service Community Schools grants unresolved.
The Damage So Far
The Trump administration discontinued 19 community schools grants in December 2025, effective immediately. Illinois alone lost access to $17 million in unspent carryover funds and $56 million in anticipated future funding. Schools subsequently eliminated approximately 150 after-school programs, 200 food initiatives, and laid off over 200 staff members.
Three separate federal lawsuits are now challenging the cuts. ACT Now Illinois won its partial restoration in court. Recipients in Kentucky, New Jersey, and New York have filed a second suit. The attorneys general of Maryland, North Carolina, and the District of Columbia are pursuing a third challenge. Eleven of the 19 canceled grants are now represented in litigation.
What Grant Seekers Should Know
Congress approved $150 million in level funding for the overall Community Schools program in FY2026, meaning the statutory authority and appropriations for these grants remain intact. The department plans to transfer program administration to the Department of Health and Human Services.
Grantees in California, Connecticut, Texas, and Wisconsin remain unrepresented in current litigation. Connecticut has explored state funding alternatives. Organizations relying on federal community schools funding should monitor these cases closely and explore interim state or foundation support. Tools like Granted can help identify alternative funding sources while litigation plays out.