The U.S. Department of Education Office for Civil Rights is investigating two Monroe County schools for potential violations.
Parents of more than 200 students will now have to find alternative schooling.
Once a Marion County judge stayed the closure of Indianapolis' Project School, Mayor Greg Ballard's office sought a change of venue.
The court request says Indianapolis Mayor Greg Ballard's office was required by law to offer time for a response from the school.
Less than a third of students at the Indianapolis Project School passed ISTEP tests -- well below the state average of 71 percent.
A proposal currently being debated at the Indiana Statehouse would expand charter schools in Indiana.
Bloomington and Indianapolis educators are looking for support for sister charter schools in both locations that will give all students a level playing field.