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Michigan schools could lose $40M with deadline change for federal COVID money

  • The U.S. Education Department revealed on Friday that states will no longer be eligible to receive reimbursements for pandemic-related school expenses from the federal COVID relief funds.
  • This decision follows the original spending deadline set by law on January 28 and ends extensions that allowed states to spend remaining American Rescue Plan funds totaling $122 billion.
  • States like Michigan, Ohio, and Tennessee have over $100 million each in leftover funds intended for tutoring, nursing, and technology to address student learning loss.
  • McMahon described the deadline extensions as "a matter of administrative grace" and said she may reconsider if states present a stronger case showing ongoing COVID impact mitigation.
  • The move risks leaving over $400 million unspent, prompting states to explore legal options and sparking concerns that efforts to address learning gaps and support vulnerable students will halt.
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prinforma.com broke the news in on Monday, March 31, 2025.
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