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The U.S. Department of Education (USDE) has rescinded reimbursements for previously approved pandemic recovery funds, putting more than $400 million in Maryland education funding at risk. The decision affects approximately 11 percent of the $3.2 billion allocated to Maryland for pandemic recovery efforts, prompting immediate concern from state education leaders. State Board of Education President Dr. Joshua Michael and State Superintendent of Schools Dr. Carey M. Wright issued a joint statement expressing shock and frustration over the sudden decision, which they learned about late Friday evening.

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The funds in question were allocated to various critical programs through the Maryland State Department of Education (MSDE), including high-dosage tutoring, social-emotional wellness initiatives, and summer learning programs. Additionally, Maryland Leads grant programs, such as the Science of Reading and Grow Your Own teacher preparation programs, are also impacted. These programs, aimed at improving literacy and addressing the state’s teacher shortage, now face uncertainty. The loss of funds will further delay capital projects such as HVAC repairs, health room revisions, and replacing carpets with vinyl in schools.

State education officials emphasized that these funds had already been spent or committed with the expectation of reimbursement. Late liquidation requests had been previously approved due to supply chain disruptions and construction delays. School systems are now being advised to suspend further spending until guidance is provided. The financial impact is expected to be particularly severe for Baltimore City, Baltimore County, Montgomery County, and Prince George’s County, which are among the largest districts in the state.

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The decision comes at a time when Maryland and its local jurisdictions are already grappling with significant budget challenges. The rescission of funds adds to this financial strain, creating uncertainty for the future of many programs that were designed to address learning loss and enhance student outcomes following the pandemic. State leaders have called on the federal government to uphold its commitments and restore trust by ensuring that promised reimbursements are delivered.

Article by multiple RFHC contributors, based upon information from the Maryland State Department of Education press release.


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