This event scores A=27.5 (above 25 threshold) with D=+13.7 (above +10), qualifying as List A. The constitutional damage stems from: (1) Rule of Law violation (4/5) - executive branch unilaterally withholding congressionally appropriated funds without legal authority, violating Impoundment Control Act precedents; (2) Separation of Powers breach (4/5) - usurping congressional power of the purse through arbitrary freeze-and-release cycle; (3) Agency Capture (3/5) - weaponizing Education Department for ideological enforcement ('radical leftwing' investigations); (4) Election interference potential (2/5) - timing and targeting creates chilling effects on educational institutions. The resource_reallocation mechanism adds 1.3x modifier as it demonstrates executive control over appropriated funds as leverage tool. Federal scope with broad population impact (K-12 schools nationwide) adds 1.2x. Severity multipliers: durability 1.1 (establishes freeze-as-leverage precedent), reversibility 0.9 (funds released but precedent remains), precedent 1.2 (normalizes conditional release of appropriated funds). B-score of 13.8 reflects moderate hype: the 'release' framing obscures the constitutional violation of the initial withholding. Layer 2 shows high mismatch (4) - celebrating fund release ignores the unlawful freeze, and narrative pivot (4) - transforms accountability story into magnanimous gesture. Intentionality at 9/15 for manufactured crisis-resolution cycle. The positive D-score indicates real damage exceeds distraction.