States rush to tackle ‘catastrophic’ stop in federal pandemic education funding
Maryland schools chief Carey Wright stated, “These funds have been spent or committed with every expectation of reimbursement."
TroibNews 
State superintendents and elected officials nationwide are urgently evaluating how schools will handle the unexpected loss of billions in federal pandemic aid, which has been utilized for a variety of purposes including construction and tutoring.
In Michigan, officials indicated that schools could forfeit about $40 million that was already earmarked for projects such as heating, ventilation, and air conditioning systems. Maryland officials have announced that the state might lose hundreds of millions intended to fund literacy programs, tutoring, infrastructure, and summer school initiatives. New Jersey’s Democratic Governor Phil Murphy stated that the state now faces an $85 million reduction in education funding—a claim that drew criticism from the federal Education Department.
States were instructed to finalize their plans for utilizing nearly $130 billion in federal Covid-19 relief aid by September 2024. However, many gained extensions during the final months of the Biden administration, which the Trump administration has now “reconsidered” and revoked, according to Education Secretary Linda McMahon in a letter obtained by PMG. The sudden funding gap leaves states uncertain about how to proceed.
“The USDE’s decision is catastrophic,” Maryland schools chief Carey Wright expressed to reporters, lambasting President Donald Trump’s Education Department. “These funds have been spent or committed with every expectation of reimbursement.”
As of early March, states had about $2.5 billion in unobligated American Rescue Plan funds allocated for elementary and high schools, based on an Education Department summary provided to PMG. Additional federal funds meant for homeless students and private schools are also at risk.
Many states, along with Puerto Rico and the District of Columbia, had received approval from Biden officials permitting them to extend their federal reimbursement timetable on pre-approved projects into early next year.
The previous administration of Education Secretary Miguel Cardona had projected that nearly all of the American Rescue Plan’s educational funding would be spent by early this year to reimburse states and schools for projects organized before the September 2024 deadline. However, some funds were still intended for further use.
"Extending deadlines for COVID-related grants, which are in fact taxpayer funds, years after the COVID pandemic ended is not consistent with the Department’s priorities and thus not a worthwhile exercise of its discretion,” McMahon stated on Friday, while noting that governments could reapply for spending extensions on specific projects.
Governor Murphy, along with other state officials, expressed a sense of urgency regarding the abrupt termination of the federal program.
“These cuts are reckless and irresponsible, allowing us very little time for contingency plans,” Murphy remarked in a statement. “At a time of unprecedented chaos and uncertainty at the federal level, Washington is failing the next generation.”
Murphy added that infrastructure projects across 20 New Jersey school districts would be impacted.
In response, the Education Department asserted that Murphy "doesn’t know what he is talking about" through a series of social media posts on Monday, adding that "New Jersey is continuing to receive all recurring federal education funds — but his COVID slush fund is over."
Local school officials had previously appealed to former President Joe Biden’s administration for additional time to utilize the relief funds established under the American Rescue Plan, contending that numerous pandemic-related challenges in staffing, vendor contract negotiations, and construction warranted extended spending timelines.
“Walking back a federal commitment to pandemic relief funds to improve the air quality, healthfulness, and safety of schools coming out of the pandemic is unacceptable,” Michigan state schools Superintendent Michael Rice stated.
Rice noted that 27 Michigan school districts had entered contracts to upgrade ventilation systems, boilers, and windows.
“Without the promised March 2026 date for federal reimbursement requests, districts may be forced to reduce instructional expenditures for students, diminish savings, or both to honor these contracts,” he warned.
Multiple state school systems contacted by PMG on Monday reported ongoing efforts to evaluate the decision's repercussions on their communities, while others did not respond to inquiries.
Meanwhile, Maryland school officials indicated they are consulting with the state attorney general’s office to explore legal recourse.
“We’re still in, I think, a state of confusion,” Wright acknowledged on Monday.
Mathilde Moreau for TROIB News
In Michigan, officials indicated that schools could forfeit about $40 million that was already earmarked for projects such as heating, ventilation, and air conditioning systems. Maryland officials have announced that the state might lose hundreds of millions intended to fund literacy programs, tutoring, infrastructure, and summer school initiatives. New Jersey’s Democratic Governor Phil Murphy stated that the state now faces an $85 million reduction in education funding—a claim that drew criticism from the federal Education Department.
States were instructed to finalize their plans for utilizing nearly $130 billion in federal Covid-19 relief aid by September 2024. However, many gained extensions during the final months of the Biden administration, which the Trump administration has now “reconsidered” and revoked, according to Education Secretary Linda McMahon in a letter obtained by PMG. The sudden funding gap leaves states uncertain about how to proceed.
“The USDE’s decision is catastrophic,” Maryland schools chief Carey Wright expressed to reporters, lambasting President Donald Trump’s Education Department. “These funds have been spent or committed with every expectation of reimbursement.”
As of early March, states had about $2.5 billion in unobligated American Rescue Plan funds allocated for elementary and high schools, based on an Education Department summary provided to PMG. Additional federal funds meant for homeless students and private schools are also at risk.
Many states, along with Puerto Rico and the District of Columbia, had received approval from Biden officials permitting them to extend their federal reimbursement timetable on pre-approved projects into early next year.
The previous administration of Education Secretary Miguel Cardona had projected that nearly all of the American Rescue Plan’s educational funding would be spent by early this year to reimburse states and schools for projects organized before the September 2024 deadline. However, some funds were still intended for further use.
"Extending deadlines for COVID-related grants, which are in fact taxpayer funds, years after the COVID pandemic ended is not consistent with the Department’s priorities and thus not a worthwhile exercise of its discretion,” McMahon stated on Friday, while noting that governments could reapply for spending extensions on specific projects.
Governor Murphy, along with other state officials, expressed a sense of urgency regarding the abrupt termination of the federal program.
“These cuts are reckless and irresponsible, allowing us very little time for contingency plans,” Murphy remarked in a statement. “At a time of unprecedented chaos and uncertainty at the federal level, Washington is failing the next generation.”
Murphy added that infrastructure projects across 20 New Jersey school districts would be impacted.
In response, the Education Department asserted that Murphy "doesn’t know what he is talking about" through a series of social media posts on Monday, adding that "New Jersey is continuing to receive all recurring federal education funds — but his COVID slush fund is over."
Local school officials had previously appealed to former President Joe Biden’s administration for additional time to utilize the relief funds established under the American Rescue Plan, contending that numerous pandemic-related challenges in staffing, vendor contract negotiations, and construction warranted extended spending timelines.
“Walking back a federal commitment to pandemic relief funds to improve the air quality, healthfulness, and safety of schools coming out of the pandemic is unacceptable,” Michigan state schools Superintendent Michael Rice stated.
Rice noted that 27 Michigan school districts had entered contracts to upgrade ventilation systems, boilers, and windows.
“Without the promised March 2026 date for federal reimbursement requests, districts may be forced to reduce instructional expenditures for students, diminish savings, or both to honor these contracts,” he warned.
Multiple state school systems contacted by PMG on Monday reported ongoing efforts to evaluate the decision's repercussions on their communities, while others did not respond to inquiries.
Meanwhile, Maryland school officials indicated they are consulting with the state attorney general’s office to explore legal recourse.
“We’re still in, I think, a state of confusion,” Wright acknowledged on Monday.
Mathilde Moreau for TROIB News
