Federal Education Funding Cut: $40M Loss Slams Michigan Schools

Michigan educators express outrage over the U.S. Department of Education’s sudden deadline change for COVID-19 relief funds, risking over $40 million in necessary health and safety upgrades across 27 districts, potentially impacting student well-being and educational resources.

Michigan educators decry last-minute federal move that jeopardizes health and safety upgrades in schools across 27 districts.

Sudden Deadline Change Jeopardizes Health and Safety Upgrades

Late on Friday, March 28, school leaders across Michigan received stunning news: the U.S. Department of Education, under Secretary Linda McMahon, had abruptly moved up the reimbursement deadline for pandemic relief funds—giving districts zero notice and effectively canceling more than $40 million in expected federal aid.

The communication affected two major COVID-19 recovery programs: the American Rescue Plan (ARP) and the Coronavirus Response and Relief Supplemental Appropriations Act (CRRSA). Districts previously had until March 28, 2026, to submit reimbursement requests for federally preapproved infrastructure projects. That deadline has now been changed retroactively to 5:00 p.m. on March 28, 2025—the same day the notice was issued.

In Michigan, 27 school districts are at risk of losing significant federal reimbursements for projects already underway or completed.

Superintendent Rice: “Walking Back Federal Promises Is Unacceptable”

State Superintendent Dr. Michael F. Rice issued a sharp rebuke to the U.S. Department of Education’s move, calling it “unacceptable.”

“Michigan’s children stand to lose more than $40 million,” Rice said. “Twenty-seven districts across the state have preapproved financial obligations that met criteria set by the U.S. Department of Education. These funds were committed for essential projects—HVAC systems, boilers, windows—and school leaders entered contracts in good faith.”

Without the funding, Rice warned, districts may be forced to cut instructional budgets, dip into savings, or both. He called on U.S. Rep. Tim Walberg, Chair of the House Education and the Workforce Committee, and the full Michigan Congressional delegation to push for a reversal.

Dr. Pamela Pugh: Communities Hit Hardest by COVID Bear the Brunt

State Board of Education President Dr. Pamela Pugh, a longtime public health expert, also condemned the action—particularly its effect on communities already hit hardest by the pandemic.

“To walk back commitments to health-focused school infrastructure projects is a direct affront to students and staff in districts like Flint, Pontiac, and Benton Harbor,” said Pugh. “Canceling funding approvals with no notice and requiring districts to reapply under new criteria is not service to schoolchildren.”

Pugh emphasized that the funding was intended to protect student health and safety and that its sudden removal undermines public health efforts in vulnerable communities.

Millions at Risk Across Urban and Rural Michigan

Under ARP funding, 12 Michigan districts stand to lose $40,069,759.21. This includes:

Flint City School District: $15.6 million
Hamtramck School District: $7.2 million
Benton Harbor Area Schools: $4.5 million
Pontiac School District: $3.2 million

Other affected districts include Battle Creek, Brighton, Lincoln Park, Port Huron, and Woodhaven-Brownstown.

An additional $1.9 million in CRRSA funds is at risk for 15 more districts, including Adrian, Carman-Ainsworth, Grandville, West Bloomfield, and River Rouge.

These districts used the federal government’s guidance and approvals to move forward on projects meant to improve building safety and energy efficiency in the wake of the COVID-19 pandemic.

Long-Term Repercussions Loom for Public Schools

Education policy analysts note that the timing and method of the federal government’s decision could have a chilling effect on future federal-state school funding partnerships. Districts may be less willing to move forward on time-sensitive improvements if there’s risk of retroactive rule changes.

The Michigan Department of Education argues that the original deadline should stand, allowing districts the time they were promised to complete and be reimbursed for essential projects.

So far, the U.S. Department of Education has not responded publicly to the growing backlash or clarified whether relief or alternative pathways will be available for affected districts.

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