The federal government has cut nearly $9 million in funding for a rural Alabama school district and a program for struggling readers, state leaders said.
In late March, the Education Department abruptly rescinded previously approved COVID relief spending extensions, saying districts had “ample time” to spend the money.
Alabama education officials said the department pulled $4 million in unspent funds directed toward a tornado-stricken school district, Selma City Schools, as well as $5 million in additional funding for a statewide reading program.
The move is the latest in a series of efforts to minimize what the Trump administration has called “wasteful” government spending. Last week, more than a dozen states sued over the order, which they said could threaten hundreds of millions of dollars in funding meant for academic recovery.
Alabama State Superintendent Eric Mackey plans to submit an appeal to reconsider funding the two projects, but expects that request to take a while.
“When the letter came and said, ‘We’re freezing all the money,’ obviously there’s more panic,” he said at a work session April 10. “But there is a process to get the money – so we can reapply, basically appeal to get the money back, and we’re in that process now.”
Spending down COVID funds
During the pandemic, schools received a historic infusion of federal funds meant to help with safe reopening and academic recovery. The Biden administration administered the last batch of funds, called ESSER III, in the spring of 2021. Leaders had until September 2024 to allocate the money, which then had to be spent by the end of December 2024.
However, some districts were able to apply for late liquidation, Mackey said, meaning they had until March of 2026 to spend the money. He said Selma City Schools is the only local school district that still has money in its account, which will fund an ongoing construction project.
The money was part of a $22 million effort to revamp an old school that had long standing air quality issues, but officials had to delay the project due to supply chain issues. Making matters worse, in the middle of the remodel, a tornado that ripped through the community demolished a nearby school where students had been temporarily housed.
U.S. Rep. Terri Sewell took to social media earlier this month, saying she would help the state with an appeal.
“This would put Selma in a tough spot,” Sewell said, noting that nine out of 10 of the district’s schools are in economically disadvantaged areas. “This is particularly troubling when we’re talking about helping our children succeed and reach their God-given potential.”
Selma’s new superintendent, who started work this week, told AL.com the district is “hopeful that the decision will be appealed, and the funds will be made available.”
Mackey said Selma still has about $4 million in their account that needs to be spent down.
The state department has another $5 million or so in unspent teacher training funds that it hopes to be able to use on a middle school reading program. Gov. Kay Ivey has budgeted $10 million for the program so far.
“I think we have really good justification, because it’s very clear that these middle school students were in primary grades the year that COVID hit,” he said. “And they continue to struggle, not just in Alabama but in the rest of the country, and we can show that they are struggling. That’s why we need to continue to invest in their reading skills.”
Nationwide, some states could lose hundreds of millions of dollars in money meant for schools. Mississippi has about $100 million that is still on the table, and Kentucky has about $300 million left over, Mackey said. He said he expects the department to see a lot of appeals, and he wants to make sure the state takes its time to bulletproof their application before he turns it in to the federal government.
“Kudos to our districts that spent their money down, but we are going to try to get the last little bit, and I believe we have really good projects that will qualify under the guidance that the Secretary has put out.”
