The U.S. Department of Education is reconsidering over $40 million in federal reimbursements promised for Michigan school infrastructure projects, putting crucial funding for student health and safety at risk.

State Superintendent Michael F. Rice and State Board of Education President Pamela Pugh have strongly opposed the move, arguing it will negatively impact students and schools statewide.

“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,” Rice said.

Schools at Risk

A total of 27 school districts had “pre-approved financial obligations” that were expected to be covered by federal reimbursement. Of these, about $24.2 million in projects were already funded by the Michigan Department of Education, while others are still awaiting payment.

“All $40 million is in jeopardy unless the U.S. Department of Education agrees to honor the previous extension approval request,” the state department said in a statement.

The funding was originally part of COVID-19 relief measures, including the 2021 Coronavirus Response and Relief Supplemental Appropriations Act and The American Rescue Plan Act of 2021.

Federal Justification for the Cuts

U.S. Secretary of Education Linda McMahon defended the decision, citing missed deadlines.

“Extending deadlines for COVID-related grants, which are in fact taxpayer funds, years after the COVID pandemic ended is not consistent with the department’s priorities,” McMahon said. “You were entitled to the full award only if you liquidated all financial obligations within 120 days of the end of the period of performance. You failed to do so.”

While the previous administration extended the deadline to March 28, 2026, McMahon’s letter, issued on March 28, 2025, announced the extension had already been amended to the same date—leaving Michigan’s education department without time to respond.

Future Uncertainty for Michigan Schools

Each of the 27 districts will now have to reapply for an extension under new, stricter criteria. State education officials vowed to work with districts to secure the funding.

“This has nothing to do with service to schoolchildren,” Pugh said. “To cancel funding approval on no notice and then require districts to apply again under different criteria is unjust.”

Michigan schools are already facing significant infrastructure challenges. A recent report from the School Finance Research Foundation estimated the state needs approximately $22.8 billion to modernize public school buildings by 2033.

Federal funding plays a crucial role in school maintenance and improvements, and the latest cuts add further strain to districts struggling with outdated facilities.