Governmental Roadblocks Continue to Impede the 'Grants Train'
We here at Thompson Grants in the past have used the expression “the grants train” to explain how federal funding moves down the track from preaward to postaward to closeout to serve a public good. For years, this grants train generally received the legislative and administrative support and resources needed to “fuel” is movement and its many worthwhile programs. Now, it seems that the grants train is facing roadblock after roadblock, stalling any forward progress to the detriment of these programs. Two recent examples highlight this struggle to keep the grants train moving.
We recently reported on a lawsuit brought by 23 state attorneys general and two governors against the Department of Education (ED) and the Office of Management and Budget (OMB) for withholding about $7 billion in education funding that had been approved by Congress. ED and OMB on June 30 abruptly froze disbursements for six federally funded education formula grant programs. The attorneys general requested that the court overturn the freeze in funding, noting that this action has created chaos in school systems nationwide.
ED was required to issue the congressionally approved funding by July 1 to ensure that schools receive resources ahead of the new academic year, and cited no legal justification for the freeze, according to the lawsuit. The affected programs are the Migrant Education Program, Title II-A, Title III-A, Title IV-A, Title IV-B (i.e., the 21st Century Community Learning Centers Program), and Adult Education Grants. OMB had stated that the funding was halted due to an “ongoing programmatic review.”
This funding halt even caught the attention of some Republicans in Congress who, after hearing concerns from impacted individuals, sent a letter to OMB calling for it to release the funding. As a response to this letter, one of its signers, Sen. Shelley Moore Capito (R-W. Va.), recently announced that ED will officially release critical funding to support 21st Century Community Learning Centers, as OMB has announced its review for these funds is complete. However, an ED notice places additional restrictions on these funds. Again, more roadblocks. No action has been taken as of yet on the funding freeze for the reminder of these programs.
Another example making headlines is the plight at Columbia University. Columbia this week reached an agreement with the U.S. government to resolve multiple federal agency investigations into alleged violations of federal anti-discrimination laws. As part of the resolution, Columbia will pay a $200 million settlement over three years, and agreed to settle investigations brought by the U.S. Equal Employment Opportunity Commission for $21 million. The university did note that agreement preserves its autonomy and authority over faculty hiring, admissions and academic decisionmaking.
In light of the agreement, a vast majority of the federal grants that were terminated or paused in March 2025 will be reinstated, and Columbia’s access to billions of dollars in current and future grants will be restored, including many grants previously terminated by the National Institutes of Health and the Department of Health and Human Services, renewal of noncompetitive grants, the release of overdue payments on active, non-terminated grants, and Columbia’s restored eligibility to apply for new federal research funding in the ordinary course.
Again, grantee are having to scratch and claw for their funding, even if it means reaching settlements in the millions, just to keep their programs moving forward. Just more instances of the grants train getting bogged down.
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2025 Federal Grants Forum: State and Local | Sept. 16-17, 2025 | Virtual Event
