Several councils are legally challenging the move by the government to scrap the Building Schools for the Future scheme.
The BSF programme was cut back by Michael Gove, the education secretary, back in July scrapping 700 of the proposed projects as part of a cost cutting drive.
Nottingham, Luton and Waltham Forest have all moved to seek a judicial review of the decision partly because they have already spent millions on planning and building schools that are now scrapped.
It has not just been councils hit with the channel also suffering losses. Some of the most high profile education suppliers, including RM, have been forced to make cuts and re-balance their operations.
In research that came out in the summer the figure of £3.7bn was the size of the business being lost to ICT suppliers.
Waltham Forest council leader Chris Robbins said that the government's decision had hurt the council and residents.
"The Government's decision to cancel the BSF projects in Waltham Forest is having a catastrophic effect on our pupils and staff and we've been doing everything we can to persuade them to change their minds," he said.
"We've gone about this the right way and we've tried to come to a reasonable agreement with the government," he added..