Michigan schools face $42 million funding loss after federal deadline change

In March 2025, Michigan education officials received alarming news that more than 20 school districts might lose nearly $42 million in federal funding from the U.S. Department of Education. The funding was initially promised as part of pandemic relief measures supporting health and safety improvements in schools. The federal government changed the deadline for aid reimbursement, moving it to March 28, 2025, and stated that districts must meet this new deadline, which had caught officials off guard as they received the letter on the same day the deadline was imposed. State Superintendent Michael Rice expressed concern over the sudden reversal of federal support, emphasizing that these pre-approved projects were essential for maintaining safe and healthy learning environments. The abrupt deadline change affects various critical projects, including improvements to heating, ventilation, air conditioning systems, and safety upgrades. As a result, districts may need to reduce instructional spending or tap into their savings to finance these projects without federal assistance. Among the affected districts, Flint City School District stands to lose the most funding, with $15.6 million at stake. Other districts, including Battle Creek Public Schools, Benton Harbor Area Schools, and Pontiac School District, are equally impacted, having relied on these funds to enhance their facilities. The funding is tied to the American Rescue Plan and the Coronavirus Response and Relief Supplemental Appropriations, and officials assert that the districts met all established criteria for reimbursement prior to the deadline change. In light of these impending losses, State Board of Education President Pamela Pugh highlighted the importance of the federal funding for educational facilities and urged reconsideration of the decision. Michigan’s representatives in Congress, including U.S. Rep. Tim Walberg, were also called upon to advocate for the restoration of these funds. Pugh described the rapid alteration of funding approval as unacceptable, as it puts the educational well-being of students and staff in jeopardy.