Michigan education officials said more than 20 school districts could lose nearly $42 million in federal funding after receiving a letter from the U.S. Department of Education stating it was reversing its deadline to request reimbursement.

Education Secretary Linda McMahon's letter modified the deadline for aid under the Education Stabilization Fund to 5 p.m. on March 28, 2025. In the letter, McMahon said, "The further extension of the liquidation period for the aforementioned grants, already well past the period of performance, was not justified."

Under the program, states could request aid for programs funded by the American Rescue Plan (ARP) and the Coronavirus Response and Relief Supplemental Appropriations (CRRSA). 

However, State Superintendent Michael Rice said the state received the letter on the day of the deadline, impacting 27 school districts with preapproved projects. According to the state, the previous deadline was set for next year on March 28, 2026. 

"Walking back a federal commitment to pandemic relief funds to improve the air quality, healthfulness, and safety of schools coming out of the pandemic is unacceptable," he said in a statement.

Rice said the projects include heating, ventilation, air conditioning systems, boilers and windows. He said the projects "met criteria set by the U.S. Department of Education for extending the districts' deadlines to request reimbursement of those funds." 

Rice said the districts may have to reduce instructional spending, decrease savings, or do both to fulfill those projects.

"The U.S. Secretary of Education needs to rethink her March 28 communication. U.S. Rep. Tim Walberg, chairman of the House Education and the Workforce Committee, and Michigan's other members of Congress must insist that federal commitments to schools and districts that they represent be honored," Rice said.

State Board of Education President Pamela Pugh said some school districts impacted by the cuts were hit hard by the COVID-19 pandemic. Those districts include Flint, Pontiac and Benton Harbor.

"These federally funded projects are important to students and staff in our districts in Michigan and across the country. To cancel funding approval on no notice and to tell districts that they may apply for a second approval from the U.S. Department of Education to access these funds, with different criteria, has nothing to do with service to schoolchildren," Pugh said in a statement.

Which Michigan school districts are impacted?

According to the state, 12 districts were expected to receive funding from ARP, while 15 were expected to receive funding through CRRSA. The Flint City School District could lose the most, $15.6 million.

American Rescue Plan reimbursements

• Battle Creek Public Schools: $3,389,571.43 
• Benton Harbor Area Schools: $4,579,396
• Bridgeport-Spaulding Schools: $543,527.85 
• Brighton Area Schools: $1,190,714.15 
• Chandler Park Academy: $1,017,396.45 
• Flint City School District: $15,603,029.05 
• Hamtramck School District: $7,248,920
• Lincoln Park School District: $1,394,178.42
• Pontiac School District: $3,294,052.23 
• Port Huron Area Schools: $497,205
• Reed City Area Schools: $58,469
• Woodhaven-Brownstown Schools: $1,253,299.63  

Coronavirus Response and Relief Supplemental Appropriations reimbursement

• Adrian Public Schools: $7,281 
• Carman-Ainsworth Community Schools: $234,818
• Grandville Public Schools: $24,545.11 
• Greenville Public Schools: $24,022 
• Insight School of Michigan: $33,363 
• Marquette Area Public Schools: $9,912.14 
• Marysville Public Schools: $367,159
• Michigan Great Lakes Virtual Academy: $79,928
• Northville Public Schools: $62,650 
• River Rouge, City School District: $28,772 
• Royal Oak Schools: $44,398 
• Van Buren Public Schools: $90,000
• Wayland Union Schools: $66,135
• West Bloomfield School District: $734,015
• Whiteford Agricultural School District: $98,143