Despite strong performance by grantees and clear congressional direction, the U.S. Department of Education (ED) cut off funding for Full-Service Community Schools in the middle of approved, multi-year projects without notice, lawful justification, or required procedures. As a result, more than $60 million in unused, congressionally appropriated funds designated to support students, families, and communities in vulnerable situations were set to expire on December 31, 2025. On December 29, 2025, the American Federation of Teachers (AFT) and the Brighton Park Neighborhood Council (BPNC) filed a lawsuit challenging the ED’s abrupt and unlawful decision to terminate the millions of dollars in funding.
The plaintiffs argue that the Department’s actions violate the Administrative Procedure Act, federal education law, and Congress’s direction to the agency to use the funds it appropriated to fund community schools.
Full-Service Community Schools provide wraparound services—including social, health, nutrition, and mental health support, and family resources—particularly in high-poverty and rural areas. For decades, Congress has approved federal funding for multi-year grants based on the school’s performance. The complaint alleges that ED, under the Trump-Vance administration, has abandoned that established process and replaced it with newly created policy preferences that were never adopted through lawful rulemaking.
On February 27, 2026, the coalition filed an amended complaint adding the National Education Association (NEA), Paterson Public Schools, Paterson Education Foundation, Sodus Central School District, and the Prichard Committee for Academic Excellence, Inc. as additional plaintiffs. The amended complaint also alleges that the discontinuations violated the First Amendment rights of some grantees.
Timeline
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The complaint was filed.
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The amended complaint was filed.
