Ongoing Issues Accessing Federal Grant Funds Continue to Impact Head Start Programs

Washington, D.C.–Ten days after the temporary federal payment freeze, dozens of Head Start programs are continuing to face challenges drawing down approved grant funds. Though the cause of the problem is unclear, this has a significant impact on Head Start which relies on steady, predictable access to operating funds in order to keep its doors open and serve children, their families, and the communities in which it operates.  

While most grant recipients have not had major disruptions, a number continue to receive ‘pending’ or ‘in process’ messages when they request to draw down funds from their grant. As a result, some Head Start grant recipients have closed down services–or may soon be forced to do so–while others have been scrambling to leverage other funding sources to keep services running.

The National Head Start Association (NHSA) conducted a survey of Head Start grant recipients on February 4, 2025. At that time, the survey found that at least 45 grant recipients serving nearly 20,000 children ages zero to five and their families, were experiencing delays in accessing funds. This included grant recipients in 23 states, D.C., and Puerto Rico. Although some of those grant recipients have had their issues resolved since Monday, we continue to hear from additional programs experiencing the same challenges. 

Therefore, our best estimate, as of today, is that 52 grant recipients serving just under 20,000 children and families in 22 states, D.C., and Puerto Rico are being affected by the inability to access their already approved grant funding.

“Head Start remains focused on supporting children and their families. However, without the ability to predictably pay the rent, buy the food needed to feed the children, and meet payroll, our entire operation is in jeopardy. And the ones who suffer the most are the children in our care,” said NHSA’s Executive Director Yasmina Vinci. 

“The reasons for the payment delays do not cast aside the real-world impact. We urge President Donald Trump and the acting leadership at the Department of Health and Human Services to immediately address the issues leading to unnecessary delays in funding so all Head Start programs will be able to serve children and help their families climb the ladder to economic prosperity.”

About the Head Start Grant Process

Head Start grant recipients are awarded a grant for a five-year timeframe. Each year within that time frame, grant recipients are required to submit a proposed plan for providing services to eligible children and families in their community. Once that yearly proposal is approved, grant recipients receive a Notice of Award and have access to the Payment Management Service (PMS) where they are able to draw down from the awarded funds in small increments and with a lead time of just a few days, in order to pay operating expenses, including rent, payroll, food, and more.