Overview
- HHS will assume administration of Project SERV, Full-Service Community Schools, Promise Neighborhoods, Ready to Learn, Statewide Family Engagement Centers, and School Safety National Activities.
- The Education Department says it will retain statutory responsibilities and oversight while HHS runs grant competitions and technical assistance and State manages the Section 117 foreign funding reporting portal with an expanded compliance role.
- Officials describe the changes as steps to streamline operations and return authority to states as part of a wider 2025–26 reorganization that has moved functions to Labor, Interior, State, and HHS, with special education not included in this round.
- Union leaders and Senate Democrats call the agreements unlawful and risky for schools, and Congress’ FY2026 law requires biweekly implementation briefings after expressing concern about the transfers.
- Several affected programs faced cancellations or funding disruptions in late 2025 that triggered lawsuits, and the administration’s 2026 budget seeks to eliminate funding for most of the grants now shifting to HHS.