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Mississippi schools risk losing $137 million in federal funds

By Kristopher White Apr 3, 2025 | 4:43 PM

JACKSON, Miss. (WJTV) – Officials with the Mississippi Department of Education (MDE) said the agency and school districts in the state collectively face a potential loss of $137,221,346 in federal funds. They said this is a result of the U.S. Department of Education’s (ED) recent decision to rescind its previously approved liquidation deadline of March 31, 2026, for COVID relief funds.

In Mississippi, MDE said those funds include American Rescue Plan Elementary and Secondary School Emergency Relief (ARP ESSER) funds, ARP Homeless funds, and ARP Emergency Assistance to Non-Public Schools (EANS) funds.

U.S. Secretary of Education Linda McMahon sent a letter to state education agencies on Friday, March 28 to inform them of ED’s decision to end the liquidation of funds. The letter said ED would consider an extension to the liquidation period on an individual, project-specific basis and invited states to explain how a project is necessary.

On April 2, 2025, MDE sent a letter to McMahon, as well as to Mississippi’s congressional and state elected officials, explaining the detrimental impact this decision will have on Mississippi’s students, educators and school communities. MDE and 66 school districts were previously approved by the ED for late liquidation of funds and have incurred millions in dollars of expenses that will not be reimbursed based on ED’s recent actions.

Officials said districts have contractual obligations that cannot simply be terminated without significant financial, educational, and legal consequences. Many of these projects are partially completed, with work occurring based on the timeline ED previously approved.

MDE officials said they’re working to recover the federal money and is offering guidance to districts directly impacted. That guidance includes pausing services and local construction projects underway.

“The MDE shares the same level of anxiety that districts are experiencing as a result of the ED’s decision. We have requested the ED reinstate the March 31, 2026, liquidation deadline, and we believe it has a legal obligation to fulfill our request,” said Dr. Lance Evans, state superintendent of education.