| Dear Chief School Administrator,
I am writing to inform you of a significant development that affects federal COVID relief funding for schools across the Commonwealth. On March 28, 2025, the U.S. Department of Education (USDE) abruptly rescinded prior approval to access Education Stabilization Funds through March 2026.
This reversal impacts more than $185 million in unliquidated American Rescue Plan (ARP) funds for Pennsylvania and 116 of its school districts, charter schools, intermediate units and career and technical centers statewide, specifically:
- $121.6 million in ARP ESSER funds
- $54.6 million in ARP Emergency Assistance for Non-Public Schools (EANS) funds
- $9.2 million in ARP Homeless Children and Youth funds
These funds were previously obligated by Local Education Agencies (LEAs) for vital education services and pandemic recovery efforts for students enrolled in our public and nonpublic schools. Despite USDE’s prior approval, USDE has now declared that the period to use this funding would close on March 28, 2025, leaving the Pennsylvania Department of Education (PDE) and LEAs without assurance of reimbursement for outstanding obligations.
In response to this abrupt decision, Governor Josh Shapiro has joined a multi-state lawsuit co-led by New York, Arizona, California, Delaware, Hawaii, Illinois, Maine, Massachusetts, Maryland, Michigan, Minnesota, New Jersey, New Mexico, Nevada, Oregon, and Washington, DC. The lawsuit challenges the legality of the USDE’s reversal and seeks to restore funding owed to Pennsylvania schools and students.
You can view the Governor’s press release on this legal action on his website.
PDE will be contacting affected LEAs directly to review the status of impacted projects and determine eligibility for submission under USDE’s new, project-specific extension request process. This process requires detailed justifications for each project, as outlined in the March 28 notice from USDE.
However, please be advised that given the uncertainty created by the USDE’s reversal, LEAs should consider immediately pausing or terminating any work or contracts associated with ARP funds that have not yet been reimbursed. Neither PDE nor the Commonwealth can guarantee reimbursement for any expenditures not already received.
You can find the most up-to-date data on impacted LEAs and funding balances on PDE’s website.
We understand the strain this situation places on your LEA and your team. Please know that the Shapiro Administration and PDE are pursuing every possible path to advocate for your students, recover lost funding, and hold the federal government accountable for its reversal.
Thank you for your continued leadership and dedication to Pennsylvania’s 1.7 million learners.
Carrie Rowe, Ed.D. | Acting Secretary
Pennsylvania Department of Education |
