Mississippi education funds at risk after U.S. reviews liquidation deadline

The Mississippi Department of Education (MDE) is currently facing the potential loss of over $137 million in federal funds due to a recent decision by the U.S. Department of Education (ED). The decision revokes a previously approved liquidation deadline of March 31, 2026, for COVID relief funds, including 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.

On March 28, 2025, U.S. Secretary of Education Linda McMahon informed state education agencies of ED's decision to cease the liquidation of funds from that date onward. However, the department mentioned the possibility of extending the liquidation period for certain projects if states could demonstrate their necessity.

In response, MDE dispatched a letter on April 2, 2025, to Secretary McMahon, along with Mississippi's congressional and state officials, detailing the negative impact this decision could have on the state's educational institutions. MDE, along with 66 school districts, had prior approval from the ED for late liquidation of funds. The sudden change means these districts face millions of dollars in expenses that might not be reimbursed.

Dr. Lance Evans, the state superintendent of education, expressed concerns about the significant consequences, ranging from financial to educational and legal implications. The affected projects span various essential services, including addressing pandemic-related learning gaps, providing high-quality instructional materials, and offering support for students experiencing homelessness. The funding also supports necessary school facility improvements and mental health services, emphasizing their critical role in maintaining a safe and supportive learning environment.

MDE is making efforts to recover the federal money while providing direct guidance to districts most impacted. This includes advising a halt to ongoing services and construction projects. Speaking on the issue, Dr. Lance Evans stated, "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."