The move creates uncertainty for states and schools as they budget for programs this summer and in the upcoming school year because they don't know if or when they'll receive the funding. Democrats say the administration is flouting the law by holding back congressionally appropriated money.

Without the funds, schools say they won't be able to provide free or affordable after-school care for low-income kids while their parents work and may not be able to hire staff to teach children who are learning English. Classes or camps underway this summer could be in jeopardy, too.