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Kent County Council has lost its High Court battle to stop the Government axing school rebuilding projects.
The schemes were part of the Building Schools for the Future initiative, under which every secondary school in England was due to be rebuilt or refurbished.
KCC joined forces with Newham Council, Luton Borough Council, Nottingham City Council, Sandwell Metropolitan Borough Council and Waltham Forest Borough Council in the legal challenge in the High Court.
They were opposing education secretary Michael Gove's decision to cancel incomplete projects under the building programme.
KCC argued the government decision was "irrational", saying it had spent £6.7m on consultants and advisers to help develop projects later cancelled.
The projects were in Thanet, Gravesham, Dover, Shepway and Swale.
The education secretary has said he will cover the costs incurred by the authorities after the contracts were terminated.