MDE responds to Mississippi potentially losing $137 million due to U.S. Department of Education rescinding decision on COVID relief funds

NEWS RELEASE 
For Immediate Release:  April 3, 2025

MDE responds to Mississippi potentially losing $137 million due to U.S. Department of Education rescinding decision on COVID relief funds

JACKSON, Miss. – The Mississippi Department of Education (MDE) and school districts in the state collectively face a potential loss of $137,221, 346 in federal funds as 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 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, 2025, to inform them of ED’s decision to end the liquidation of funds effective March 28, 2025. 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 Secretary 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.

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. These are not merely numbers on a spreadsheet; they represent essential services and supports that directly benefit Mississippi students, including:

• Instructional services specifically designed to address pandemic-related learning gaps;
• Access to high-quality instructional materials and professional development for educators to implement them effectively;
• Ongoing support for students experiencing homelessness, a need that has persisted since the start of the pandemic;
• School nurses and mental health services to address the heightened wellness needs of students, which remain at historic levels since the onset of the pandemic; and
• Essential school facility repairs and improvements that are necessary to ensure a safe and healthy learning environment for all students.

MDE is working expeditiously 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.

Find all MDE news releases at mdek12.org/news.

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Media Contact:

Jean Cook, APR
Chief of Communication
601-359-3515
jcook@mdek12.org

Shanderia Minor
Public Information Officer
601-359-3515
sminor@mdek12.org