In late March, the U.S. Department of Education sent a letter to some state education leaders notifying them that the previous deadline to spend COVID-19 relief funds would be cut short, leaving state and local districts without reimbursement to cover costs for projects funded by the federal relief dollars.
The deadline for some state and local districts to spend funding intended to help students recover academically from the pandemic was extended to March 2026 under the Biden administration, but U.S. Department of Education Secretary Linda McMahon now says those funds must be liquidated within the next few months.
"The Department has concluded that the further extension of the liquidation period for the aforementioned grants, already well past the period of performance, was not justified," McMahon said in the letter. "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."
The Kentucky Department of Education (KDE) says these abrupt changes have left several local school districts in the Commonwealth, including Covington Independent and Boone County Schools, holding the bag on previously approved projects already in motion.
The U.S. Education Department (USED) says it will consider funding extensions for certain individual district projects. KDE says it has identified a handful of school districts it believes should qualify for the extension due to supply chain issues delaying some projects and has sent requests on their behalf.
“While we still hope to have these projects approved so our districts can move forward, they should not have to go through this extra step and the uncertainty because these projects had already been approved by USED," Kentucky Commissioner of Education Robbie Fletcher said in a statement. "We expect the federal government to honor its commitments to our schools and districts."
Covington Independent Schools
Covington Independent Schools had nearly $570,000 of its COVID funding rescinded for a project to upgrade its electrical, heat, and air ventilation systems at Holmes Middle School and Holmes High School. The district says the improved ventilation will reduce the risk of airborne illness in its schools, ultimately increasing student attendance and allowing for summer educational programs in its buildings to be extended.
Covington says it hasn't yet spent the rescinded funding because the district has been waiting more than a year for the necessary parts to complete the project.
Boone County Schools
Boone County Schools had close to $1.3 million in funding rescinded by the federal government, intended for math and language arts instructional resources for elementary school students.
The school district has already spent $600,000 in upfront costs. In a statement shared by KDE, Boone County Superintendent Jeff Hauswald says the district can cover that $600,000 using its reserve funds, but it'll impact how much the school system can spend in upcoming school years.
Kentucky Department of Education projects
KDE also says the state has $18 million in unspent federal relief money previously approved for an extension. Much of that funding is designated for technology, educator training, summer learning programs, local before-and-after-school initiatives, and maintenance and improvement projects at the Kentucky School for the Deaf.
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