$185 Million Education Funds Revoked in Pennsylvania; Most From American Rescue Plan

On Thursday, Governor Josh Shapiro announced that roughly $185 million in federal funds for Pennsylvania public education was revoked. Shapiro has joined a multi- state lawsuit in response.
116 Pennsylvania school districts, charter schools, tech schools, intermediate units, and the education department itself had $185 million in funds revoked on March 28.
All of the funds are American Rescue Plan funds from the COVID pandemic era; most of them have been approved for distribution. Projects range from security upgrades to mental health services to HVAC construction upgrades— all projects which can take time to complete even after budgeted.
Pennsylvania and the U.S. Education Department agreed to an extension to use the funds earlier in the year, and that extension is what was revoked.
The revoked extension impacts over $15 million in our viewing area. Over $12.5 of that comes from Erie City school district. The Midwestern Intermediate unit in Mercer county has $1.3 million paused. The Sharpesville Area School District, also in Mercer county, has over $900,000 paused.
Erie, Warren, Crawford, Mercer, and Venango counties were all impacted.
Fifteen other states and the District of Columbia are part of the lawsuit.
This funding fight is coming up as the state continues navigating a letter the U.S. Education Department sent in February, telling education departments across the nation to stop DEI curriculum, or risk losing funds.
That letter was challenged in court. The Trump administration recently sent a follow up letter in the past few weeks asking for a status report.
Last week, the Trump administration published an agreement to extend when they said states must comply to the initial letter. On Wednesday, April 9, Pennsylvania’s Education Department wrote back to the White House that the Commonwealth is already in compliance with all current law.
At this time, there is no link between that ongoing issue and the current funding lawsuit.