A coalition of 20 states, school districts, unions and disability advocates filed amended lawsuits this month challenging the U.S. Department of Education’s plan to shift core programs to other federal agencies. Plaintiffs argue federal law requires the Education Department to run key K–12 and postsecondary grant programs and say interagency agreements with Labor, HHS, Interior and State will disrupt service delivery and harm students. The complaint cites concrete program transfers—including about $28 billion in K–12 grants and roughly $3.1 billion in postsecondary institution-based grants to the Labor Department—and requests courts block the moves. The suits name Education Department leadership and rely on filings and hearing testimony from Democratic lawmakers who flagged grant-management delays after the Labor Department assumed new responsibilities. The department defends the reassignments as efficiency and parental-control measures in comments to press. For higher education leaders, the litigation signals months of funding uncertainty for federal grants and a potential reordering of federal oversight and compliance responsibilities. If courts enjoin the transfers, universities and states could see restoration of prior grant-management channels; if the government prevails, expect long-term operational shifts as agencies adopt new grant workflows and monitoring standards.