The federal government is restoring $137 million in education funds to Mississippi schools.
The U.S. Department of Education notified states last week that it would reinstate pandemic relief funds. The decision comes less than three months after the federal government revoked billions nationwide as part of Trump administration efforts to cut government spending.
State education agencies and school districts originally had until March 2026 to spend the money, but the federal government claimed that because the pandemic was over, they had no use for the money.
That March 2026 deadline has been reinstated following a series of injunctive orders.
A coalition of Democratic-led states sued the federal government in April over the decision to withhold the money. Then, a federal judge granted plaintiff states injunctive orders in the case, which meant those states could continue spending their COVID-relief dollars while other states remained restricted.
But the education department decided that wasn’t fair, wrote Secretary Linda McMahon in a letter dated June 26, so the agency was restoring the money to all states, not just the ones involved in the lawsuit.
“The original intent of the policy announced on March 28 was to treat all states consistently with regards to safeguarding and refocusing their remaining COVID-era grant funding on students,” she wrote. “The ongoing litigation has created basic fairness and uniformity problems.”
The Mississippi Department of Education notified school districts about the decision on Friday.
In the meantime, schools and states have been requesting exemptions for individual projects, though many from across the country have been denied.
Eleven Mississippi school districts had submitted requests to use the money to fund services such as tutoring and counseling, according to records requested by Mississippi Today, though those are now void because of the federal government’s decision.
Starting immediately, school districts can submit new requests to the state education department to have their federal allocation reinstated.
Mississippi Today previously reported that about 70 school districts were relying on the federal funds to pay for a range of initiatives, including construction projects, mental health services and literacy programs.
In 2023, almost half of Elementary and Secondary School Emergency Relief funds, pandemic relief money allocated to schools across the country, went to students’ academic, social, and emotional needs. A third went to operational and staff costs, according to a report from the U.S. Department of Education.
Though Lt. Gov. Delbert Hosemann previously said that legislative leaders might consider helping agencies that were impacted by federal funding cuts, House Speaker Jason White said Monday that he did not have an appetite for directing state funds to pandemic-era programs.
Small school districts were already feeling the impact of the federal government’s decision to rescind the money. In May, Greenwood Leflore Consolidated School Board voted to terminate a contract on a school construction project funded with federal dollars.
The litigation is ongoing, so the funding could again be rescinded.
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