Roll back of federal COVID funding concerns Mississippi state, local education officials

• Change in deadline over pandemic era funding by the U.S. Department of Education forcing Miss. Dept. of Education and school districts to consider options.

The Mississippi Department of Education is concerned about a recent decision by the federal government regarding access to COVID-19 pandemic federal reimbursement funding.

The U.S. Department of Education has rescinded the deadline of March 1, 2026, to liquidate more than $137 million in federal funds previously allocated to MDE and local school districts for relief in response to the pandemic. Those funds were provided as part of American Rescue Plan Elementary and Secondary School Emergency Relief, ARP homeless funds and ARP Emergency Assistance to Non-Public School funds.

Last month, MDE received a letter from U.S. Secretary of Education Linda McMahon alerting all state education agencies that on March 28 of this year, the March 1, 2026, deadline was officially rescinded, and the liquidation of that federal assistance has ended.  

The changes will affect about 66 local school districts and MDE, which were working under the previously approved deadline extension granted by the U.S. Department of Education.

“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 stated late last week in response to the change. 

Programs that could be affected by the loss of those reimbursement funds include those that address pandemic-related learning gaps, access to high-quality learning materials, access to professional development for educators, access to assistance that benefits homeless students and funding that is being used to conduct repairs and maintenance on educational facilities. 

MDE has submitted a letter in response requesting the deadline extension of March 1, 2026, be reinstated to allow time to complete contracts and work already 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,” State Superintendent of Education Dr. Lance Evans stated in the release.

With many of those funds already spent, the news that the affected districts and MDE as a whole will not be reimbursed for those expenses is of concern.

“I am hopeful that MDE’s response and request to reinstate the March 2026 deadline is granted,” Senate Education Committee Chairman Dennis DeBar (R) told Magnolia Tribune. “If not, this will require school districts to make difficult decisions on how to satisfy their outstanding obligations.”

MDE’s letter in response to the deadline being rescinded states that not only could districts face financial consequences, but there is the potential for litigation against school districts.

“Our 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,” Evans states in his response letter to McMahon.

MDE also cites six requests for reimbursement for funds spent prior to the March 28, 2025 letter that have yet to be approved. Those requests for reimbursement of more than $2 million in expenses were made between February 5, 2025, and March 6, 2025, and there is another $24 million in outstanding expenditures during February need to be drawn.

Additionally, there are qualifying expenses for March that have yet to be determined by MDE, Evan’s response letter states.  

“If funding is not restored, Mississippi school districts will be forced to default on payments to contractors and vendors that are currently under contract, which will result in litigation that will put additional burdens on school districts,” Evans writes.