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August 23, 2026

America December 31, 2025 2 mins read

Chicago Groups Sue Education Department Over After-School Funding Cuts

America ı By Tyler Brooks

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Chicago Groups Sue Education Department Over After-School Funding Cuts

Two lawsuits filed this week by Chicago-based education organizations challenge the U.S. Department of Education’s decision to cut funding for community school and after-school programs, arguing the move was unlawful and threatens services relied on by thousands of students.

One lawsuit was filed Monday in U.S. District Court in Washington, D.C., by the American Federation of Teachers and the Brighton Park Neighborhood Council. A second lawsuit was filed the same day in U.S. District Court in Chicago by Afterschool for Children and Teens Now and Metropolitan Family Services.

The complaints allege the Department of Education abruptly terminated millions of dollars in grant funding mid-academic year, affecting programs across Illinois that provide after-school instruction, mental health services, food assistance, and enrichment activities.

According to the plaintiffs, approximately 32 schools statewide are impacted, affecting nearly 19,000 students. The programs were funded under grants that were expected to run for five years but were cut after only two years, eliminating an estimated $60 million in previously awarded funding.

The organizations say the funding loss could lead to staff layoffs and the suspension of services such as tutoring, STEM and robotics classes, financial literacy instruction, workforce development programs, and student clubs, just as students return from winter break.

The Department of Education said the funding decisions reflect a review of grants to ensure alignment with current federal priorities. In a statement, a department spokesperson said grants were discontinued if they conflicted with policy goals related to merit, fairness, and educational standards.

The plaintiffs dispute that characterization, arguing the programs do not rely on impermissible criteria and that perceived policy disagreements are not lawful grounds for terminating grants. They contend the funding cuts will cause immediate and irreparable harm to schools and students.

Hearings on the lawsuits are scheduled for Wednesday in federal courts in Washington, D.C., and Chicago.

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Tyler Brooks

Tyler is covering the intersection of law, finance, and public policy. With a keen eye for regulatory shifts and market trends, he brings clarity to complex issues shaping the global economy, and drama whenever possible.

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