The Lynchburg Community Action Group will no longer operate the local Head Start program after failing to comply with federal policies, according to a statement from the federal Administration for Children and Families.
Lyn-CAG’s last day of running the program is Friday, and an interim management group will take over on Saturday, according to a letter sent to Head Start parents.
Children who are already enrolled in Head Start with Lyn-CAG will continue receiving services under the new leadership. No reapplication is necessary.
Lyn-CAG has operated the local Head Start program for more than 50 years. According to the program’s 2024-25 annual report, it serves more than 200 children across seven locations in the city of Lynchburg and the counties of Bedford and Amherst.
Head Start is a federal program that is free for eligible families and prepares 3- to 5-year-old children to succeed in school with language, literacy, health, family well-being and social development objectives. The federal Office of Head Start, run by the federal Administration for Children and Families, distributes grant funding to 1,600 local agencies across the country that operate Head Start for their communities.
When local program providers “can no longer continue to run the program,” the federal Office of Head Start asks a nonprofit group called Community Development Institute Head Start to become the interim manager, according to the CDI Head Start webpage for the Lynchburg area program.
“Lynchburg Community Action Group is disappointed to be losing the Head Start program, but our team is committed to assisting the students, family members, and staff during this transition,” said Tamara Rosser, the nonprofit’s CEO, in an emailed statement. “Our commitment to serving our communities remains the same and we will continue to provide assistance through our other programs.”
Lyn-CAG’s other programs include employment training, financial literacy workshops, reentry services and down payment assistance for first-time homebuyers, according to its website.
Noncompliance was identified before management shift
Lyn-CAG’s Head Start grant period ran from July 2020 to June 2026, according to the statement from the federal Administration for Children and Families. Seven quality conditions determine whether a local grant is subject to open competition during grant renewal, the statement reads. Competition is prompted if an agency has two or more deficiencies, which are defined as “systemic or substantial performance failures.”
“The Lynchburg Community Action Group received deficiencies in its personnel policies, fiscal infrastructure, and program goal achievement,” the statement reads.
Lyn-CAG did not correct those issues during a federal monitoring review initiated in December, according to the administration’s statement. As a result, the federal Office of Head Start “decided to deny refunding to the agency and placed the service area under interim management,” the statement reads.
“During 2024 – 2025, we worked diligently to ensure that all Head Start operations are in full compliance with federal and state regulations,” Lyn-CAG’s most recent annual report states.
In Lyn-CAG’s most recently available public financial audit, published in December 2024, auditors reported that the nonprofit “did not comply with requirements” regarding cash management with the Head Start program. The audit reports that the nonprofit “drew down funds in excess of the amount actually needed for the period” for Head Start.
“Compliance with such requirements is necessary, in our opinion, for Lynchburg Community Action Group, Inc. to comply with the requirements applicable to that program,” the audit reads.
The audit states that the nonprofit’s financial statements as a whole “present fairly, in all material respects.” Public financial statements show that about half of Lyn-CAG’s more than $4 million annual budget came from the Head Start grant; the rest of its budget comes from other federal grants, along with state and local grants and revenue from programs.
What’s next?
Interim management by CDI Head Start is temporary. Its staff will manage day-to-day operations of the program, while staff from the federal Head Start office work to select a new long-term local provider.
The Administration for Children and Families will soon post an official “notice of funding opportunity” for organizations interested in operating Head Start in the Lynchburg service area, according to the administration’s statement to Cardinal News. A panel of reviewers will evaluate all eligible applications. The federal Head Start website states that panels are composed of “non-federal subject matter experts with knowledge and experience in the area under review.”
In the meantime, CDI Head Start is hiring a local program director, administrators, and teaching staff to run the service until a new permanent provider is selected, according to the CDI Head Start webpage. The management group recruits from the existing Head Start staff first and will post any remaining job vacancies publicly after the transition is complete.
CDI Head Start staff began preparing for the transition last week by setting up needed services, securing required insurance coverage and more, according to the letter sent to parents.
Parents of children in the Head Start program are invited to participate in CDI Head Start’s parent committee and policy council, according to the letter. More information will be available when the transition is formalized.
Early Head Start services, for children up to 3 years old, are funded by a separate federal grant at a separate nonprofit called HumanKind and will not be affected by the transition at Head Start, said Donna Dunn, director of communications for HumanKind.
It’s too early to know what permanent leadership will look like at Head Start, Dunn said. Even so, “we believe in the importance of Head Start and the vital role it can play in families’ lives,” and “we look forward to seeing this service continue in our community,” she said.
HumanKind recently expanded to grow its Early Head Start capacity from 48 to 90 children, Dunn said, and “remains committed to providing the highest quality comprehensive services to children and families across the communities we serve.”
No parents of Head Start children could immediately be reached for comment Wednesday. Contact reporter Emma Malinak at emma@cardinalnews.org with comments, as this is a developing story.
