Michigan education officials may have overstated impact of Trump fund freeze

• Michigan school districts had an extension to use federal COVID-19 funds but that extension was cancelled
• That puts nearly $42 million in question but the state now says it has already paid more than half of that to schools
• It’s unclear if local districts, the state or the federal government will finish funding the COVID-19 relief contracts

Local school districts could still be on the hook to pay for projects they expected to be covered by federal COVID-19 relief funds, but the amount is likely less than the Michigan Department of Education previously stated. 

The Trump administration canceled COVID-19 spending deadline extensions on Friday, saying states and schools districts had had “ample time” to spend the funds. In a statement Monday, state officials said Michigan districts could be out more than $40 million, but it issued a clarification the next day acknowledging that the state had already paid districts more than half of the money, $24.2 million. 

“The districts may not be paid the remaining approximately $17.8 million for which they haven’t already been paid,” the Michigan Department of Education said in the Tuesday statement. 

Related:

• Michigan education officials cry foul after US abruptly cuts off COVID funds
• Trump orders end to Department of Education. What it means for Michigan
• Michigan districts brace for cuts, as number of needy students falls

The state Department of Education distributes the federal funds to districts and then the state applies to the federal government for reimbursement. 

The department previously said 27 Michigan school districts stood to lose money because they had approved projects with the understanding that they would be paid for using federal dollars. Among the districts listed was Flint, said to have $15.6 million on the line. 

On Tuesday, the state clarified that Flint had already received $14.2 million of that. 

Flint Superintendent Kevelin Jones addressed the issue in a statement Wednesday. “Some misunderstandings have suggested that Flint Community Schools is losing or being asked to return $15.6 million of unspent ESSER [Elementary and Secondary School Emergency Relief] funds. I want to be very clear: we have not been notified of any federal request to return funds, and all ESSER 3 funds have been allocated and spent responsibly in compliance with federal and state guidelines, as well as deadlines met, by Flint Community Schools.” 

Uncertainty remains

The state education department said in its Tuesday statement that it still considers more than $40 million to be in jeopardy “unless the U.S. Department of Education agrees to honor the previous extension approval request from the federal government.”

Asked why the full amount would be at risk even though the state has already paid out $24.2 million, state education spokesperson Bob Wheaton said in an email to Bridge: “So many things have changed under this administration at the federal level that we don’t know what’s going to happen.

“Districts were paid based on the practices of the previous administration, but as evident from last Friday’s letter from the education secretary, we can’t count on this administration keeping commitments made by the federal government under the previous administration.” 

It’s unclear who is on the hook for picking up the tab if the federal government doesn’t step in. 

“It is difficult to say with certainty at this point what would happen if the federal government would not cover the funds,” Wheaton said. 

Where is the funding coming from? 

Congress passed three rounds of COVID-19 relief funds for school districts during the pandemic. In total, Michigan received about $5.6 billion in funds. School leaders used the funds for mental health support, tutoring and building improvements, among other things. 

School districts had until Sept. 30, 2024, to finalize spending commitments for the most recent round of funds and had to finish spending the money by late January 2025 unless they received an extension.

While still under the Biden administration, the US Department of Education had granted an extension to March 28, 2026, to request reimbursements for funds, according to the Michigan Department of Education.

But US Secretary of Education Linda McMahon sent a letter to state school chiefs on Friday saying that the deadline for reimbursement requests had been changed to 5 p.m. on March 28, 2025, the same day as the letter.

That raised concerns that districts that had already committed to contracts could be left holding the bag. 

McMahon said in her letter that the US Department of Education would consider deadline extensions on project-specific requests. The Michigan department said it would work with “affected districts to determine whether to pursue this option for each district’s outstanding federal funds.” 

What’s at stake

Here’s how much districts could lose, according to a Bridge analysis of numbers provided by the Michigan Department of Education. (Calculated by taking the amount the districts expected to receive in remaining federal COVID-19 relief money and subtracting the amount that Michigan Department of Education has already paid out to the districts.)

Numbers are rounded to the nearest dollar. 

For the American Rescue Plan:  Total: $16,969,283

• Hamtramck School District: $3,977,307
• Pontiac School District: $3,294,052
• Benton Harbor Area Schools: $2,969,725
• Battle Creek Public Schools: $2,491,808
• Flint City School District: $1,400,020
• Lincoln Park School District: $779,502
• Woodhaven-Brownstown Schools: $736,475
• Bridgeport-Spaulding Schools: $543,528
• Chandler Park Academy: $472,870
• Brighton Area Schools: $283,565
• Reed City Area Schools: $20,431
• Port Huron Area Schools: $0

For the Coronavirus Response and Relief Supplemental Appropriations (CRRSA):  Total: $1,096,184: 

• West Bloomfield School District: $734,015
• Michigan Great Lakes Virtual Academy: $79,928
• Wayland Union Schools: $66,135
• Northville Public Schools: $62,650
• Van Buren Public Schools: $58,030
• Insight School of Michigan: $33,363
• Greenville Public Schools: $24,022
• Royal Oak Schools: $14,728
• Marquette Area Public Schools: $9,912
• Adrian Public Schools: $7,281
• River Rouge, City School District: $4,120
• Carman-Ainsworth Community Schools: $2,000
• Marysville Public Schools: $0
• Whiteford Agricultural School District: $0
• Grandville Public Schools: $-552  (MDE said an error was made in the amount paid and the extra funds will need to be repaid) 

Bridge reporter Mike Wilkinson contributed to this report.