Federal Grant Delays, Department of Education Hiring Surge, and Lawsuit Against Education Department Dismantling Move Forward

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May 11, 2026

Leading the News this Week

More than $2 billion in federal education grants remains withheld months after Congress approved the fiscal year 2026 budget, affecting higher education programs tied to research, training, and student support. The delay, reported across dozens of grant programs, has raised concerns among colleges and advocacy groups about disrupted funding cycles, staffing uncertainty, and stalled student services nationwide.

Read on for more information on Federal Education Grant Delays, the Department of Education’s Hiring Surge in the Federal Student Aid Office, and A Lawsuit Challenging Efforts to Dismantle the Agency.

 

News in Higher Education

Concerns Grow Over Federal Education Grant Delays

Concerns are growing over the Trump administration’s decision to withhold more than $2 billion in congressionally approved education grant funding, including several higher education programs the administration has repeatedly proposed eliminating. This includes programs such as education research grants, teacher preparation and training programs for colleges of education, community college-based support initiatives, and federal programs serving migrant and other underserved college students (such as the High School Equivalency Program (HEP) and the College Assistance Migrant Program (CAMP).

According to reports, the Office of Management and Budget (OMB) has delayed releasing funding for dozens of federal grant programs months after Congress approved the fiscal year 2026 education budget through slowing down the process known as apportionment, where OMB doles out funding to federal departments and agencies that then issue out these dollars in the form of grants.

Higher education leaders and advocacy organizations warn that continued delays could disrupt grant competitions, staffing, research initiatives, and student support programs at colleges and universities nationwide.

Education Department Launches Hiring Surge in Federal Student Aid Office Following Prior Staffing Cuts

The U.S. Department of Education is hiring more than 330 employees for its Federal Student Aid (FSA) office by 2027, about a year after major staffing cuts. The office plans to add 334 full-time positions, representing roughly a 45% increase from current staffing levels. So far, FSA has already onboarded dozens of new employees since late 2025 as the agency works to rebuild capacity following layoffs that affected key student aid operations.

New hires will include technology specialists, program analysts, and attorney advisers. The increase reflects growing responsibilities at FSA, including managing student loan repayment programs, overseeing loan servicers, updating higher education policies, and processing borrower defense claims from students alleging college fraud.

Federal Judge Allows Lawsuit Challenging Trump Education Department Plan to Proceed

A federal judge in Maryland has ruled that a lawsuit challenging the Trump administration’s efforts to dismantle the U.S. Department of Education can move forward. The case, brought in March 2025 by the NAACP, the National Education Association, and other advocacy groups, argues that the administration’s actions are illegal without congressional approval.

The lawsuit cites several actions as evidence, including an executive order aimed at restructuring the department, the cancellation of about $1.5 billion in education grants and contracts, and large-scale layoffs within the agency. The plaintiffs argue these steps have significantly weakened the department’s ability to carry out its required responsibilities. Meanwhile, the federal government claims that its actions are lawful.

By denying the administration’s motion to dismiss, the court allows the case to continue through the legal process. 

 

Grant Opportunities

Please review the Office of Career, Technical, and Adult Education's Community College webpage for other grants community colleges are eligible for. These below are the top highlights:

TRIO Education Opportunity Centers Program (EOC)

DOL, on behalf of the Department of Education, announced the grant competition for the TRIO Education Opportunity Centers (EOC) program. This program provides counseling and information on college admissions to qualified adults who want to enter or continue a program of postsecondary education. The EOC program also guides participants on financial aid options, including basic financial planning skills, and assists in the application process. New this year: state agency applicants can earn 5 competitive preference points and larger awards. The program also focuses more this year on workforce development. Note that existing programs may still win up to 15 prior experience points if they have strong student outcomes. Community colleges may apply in partnership with a state agency and/or as individual applicants. The closing date for this grant opportunity is May 14, 2026, at 11:59 PM ET.

Strengthening Community College Training Grants

In this 6th round, the objective of  the Strengthening Community College Training Grant (SCCTG) competition is to fund community colleges aiming to build "program and system capacity for implementing and scaling access to short-term training opportunities through Workforce Pell Grants—i.e., promoting industry-driven strategies, worker mobility, and integration with the larger state workforce system (e.g., Workforce Innovation and Opportunity Act (WIOA) partners) for statewide impact." The closing date for this grant opportunity is May 20, 2026, at 11:59 PM ET.

Child Care Access Means Parents in School (CCAMPIS)

The U.S. Department of Education (ED) released this year’s competition for Child Care Access Means Parents in School (CCAMPIS). This year, ED expects to make 148 awards between $150,000 to $1,000,000 for four-year grants to colleges with at least $250,000 in Pell Grant funding to support child care for parenting low-income students. Here is an FAQ from ED.  Urban Institute is offering a free webinar titled Using Data to Strengthen Your CCAMPIS Application on May 14. Register here.  The deadline to apply is May 29, 2026.

 
  • May 14, 3 PM ET WEBINAR: Using Data to Strengthen Your CCAMPIS Application
  • May 14, 11:59 PM ET TRIO Education Opportunity Centers Program Grant Closes
  • May 20, 11:59 PM ET. Strengthening Community College Training Grant Closes
  • May 20, 11:59 PM ET.  Deadline to comment on ED's Accountability Framework
  • May 29, 11:59 PM ET. Child Care Access Means Parents in School (CCAMPIS) Grant Closes
  • June 5, 1-2 PM ET LAW Live
  • July 10, 1-2 PM ET LAW Live
  • August 7, 1-2 PM ET LAW Live
  • September 4, 1-2 PM ET LAW Live
  • October 2, 1-2 PM ET LAW Live 
  • October 21-24 ACCT Leadership Congress
  • November 6, 1-2 PM ET LAW Live 
  • December 4, 1-2 PM ET LAW Live
 

Outreach Efforts

Is your institution meeting or hosting an event with federal elected officials?

We created a Congressional Contact Form that will help us track outreach efforts of community college leaders across our membership. By filling out the form, you are better informing ACCT's advocacy efforts and our advocacy team is able to continue those conversations with congressional staff in DC. 

 

ACCT NOW is the go-to resource for issues affecting community colleges. Our new website features original reporting and research, as well as of-the-moment legislative updates. ACCT NOW also includes articles, reports, and research from outside sources that benefit the ACCT community. Read the Latest Articles on ACCT NOW:

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Would you Like a Federal Update Session for Your Team?

Both this new presidential administration and new Congress have brought with them a flurry of developments in the federal landscape that can make keeping up a monumental task. ACCT's Government Relations team is here to help by offering a 45-minute to an-hour federal update session to community college leadership teams who are ACCT members. To request a session, fill out this form and please email publicpolicy@acct.org with any questions.

Have a Question?

Contact us with any questions or concerns about public policy and ACCT's advocacy on behalf of two-year colleges and two-year college trustees. ACCT's Latest Action in Washington alerts are sent to interested ACCT members to keep you up to date on important legislative activities that impact community colleges.

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Spread the Word.

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