When Illinois students return from the holiday break, thousands could find the counselor's office empty, the food pantry dark and after-school programs suddenly gone. The Trump administration has told ACT Now Illinois it will discontinue the nonprofit’s Community Schools grant effective Dec. 31, a move local leaders say risks wiping out services for about 19,000 students in 32 schools across 16 districts. District officials and program coordinators warn the change could force immediate layoffs and scramble local budgets just as families lose supports they rely on.
Local impact and who’s affected
According to the Chicago Sun‑Times, ACT Now was in line to receive $18 million in 2026 and another $37 million over the following two years to keep its programs running. The organization says about 600 staff members currently work in ACT Now‑funded community‑school roles. Two of the 32 affected schools are in Chicago Public Schools, with the rest spread across suburban and rural districts. The Sun‑Times reports that some districts have already begun issuing layoff notices, and that ACT Now has filed an appeal of the department’s decision.
What community‑school funding pays for
Community Schools grants cover a mix of wraparound services that keep students in class and families afloat. The money pays for supports such as mental‑health counselors, school‑based food pantries, after‑school enrichment, mentors, and clothing closets. As detailed by Education Week, cancellations like these have already prompted layoffs in some rural districts and would wipe out funding for dozens of projects nationwide.
Federal rationale and the appeal window
Education Week reviewed a sample “notice of non‑continuation” and reports that the Education Department is citing either alleged violations of federal civil‑rights law or conflicts with the administration’s policy agenda when it pulls previously awarded funds. The outlet says about 19 of roughly 70 five‑year Community Schools grants were cut, removing roughly $61 million that was due Jan. 1 and about $107 million more through 2028, and notes that grantees have only a short window to file an appeal. Education Week also quotes agency language that the department is “no longer allowing taxpayer dollars to go out the door on autopilot,” wording the administration has used to defend the review process.
Unions and officials push back
“This is a direct attack on students, families and the educators who serve them,” Stacy Davis‑Gates, president of the Chicago Teachers Union and the Illinois Federation of Teachers, said in a statement, urging state leaders to replace the lost funding. The Chicago Sun‑Times reports that union leaders and ACT Now have asked Gov. J.B. Pritzker and lawmakers of both parties to step in.
What comes next
ACT Now and other grantees have filed appeals and are leaning on lawmakers as a last‑ditch strategy to restore funding, but the tight timetable leaves little room for major fixes before the first scheduled payment date. Recent administrative appeals have had mixed results. Some recipients have won reversals, while many others have seen their appeals denied. For families who depend on school‑based services, the next few days will determine whether programs survive or whether districts must scramble for local bridge funding or cut services immediately.
Legal and administrative timeline
The non‑continuation letters give grantees only days to request a review addressed to the Education Department’s assistant secretary, a schedule advocates say barely allows time to respond to complex allegations. Even when appeals succeed, the process can be slow or only partly fix the problem, and organizers say they will keep lobbying federal and state officials to restore funds or find alternative supports. Parents and educators say they want clarity quickly so staffing and student services are not left in limbo when school resumes.
