The American Federation of Teachers and a Chicago nonprofit sued the U.S. Department of Education after the agency cut funding to active Full‑Service Community Schools grants mid‑project, affecting partnerships that include school districts, colleges and university‑affiliated nonprofits. The plaintiffs say the Education Department terminated multiyear awards ‘without notice’ and without following required procedures; the action halts roughly $61 million due Jan. 1 and threatens another $107 million earmarked through 2028. The lawsuit raises questions about federal grant continuity, oversight and the downstream effects on institutions that partner with K‑12 systems. Colleges that host community‑school programs or provide wraparound services should assess exposure and plan contingencies for interrupted federal funding streams.