DPS could lose nearly $2 million after feds yank COVID-era funding waiver

DECATUR, Ill. (WAND) — A U.S. Department of Education decision to revoke a previously approved extension on pandemic relief funds for Illinois schools means that Decatur Public Schools could lose around $1.9 million.

At Tuesday's school board meeting, Chief Operational Officer Dr. Mike Curry told the board that DPS is one of 27 school districts in Illinois impacted by the Trump Administration's decision to reverse the previously approved extension.

In an April 1 news release, the Illinois State Board of Education described the decision as "clawing back funds for Illinois schools."

“This decision is a devastating blow to the students and schools that were relying on these approved funds to provide critical services," said State Superintendent of Education Dr. Tony Sanders in the release from ISBE. “School districts depend on stability in funding to plan effectively and ensure continuity of services for students. The abrupt reversal of this extension disrupts stability and jeopardizes essential programs that support students' learning recovery."

Elementary and Secondary School Emergency Relief (ESSER) grants were awarded to schools to keep them operating safely and provide academic support to students. DPS had used funds for projects like its new magnet school.

According to ISBE, Illinois has spent 98.5% of its federal pandemic relief funds. The remaining $77.25 million has been obligated, meaning it has been committed within contracts, orders, or payroll, but has not yet been expended.

The school districts, including Decatur, requested extensions to spend the pandemic-era money to account for supply chain issues, staffing shortages, and other delays. The U.S. Department of Education previously granted these requests, but revoked them on March 28 giving districts less than one day to spend the money.

During the meeting, Curry told the board that superintendent Dr. Rochelle Clark didn't even receive receive the letter from the government until April 1.

Due to logistics and poor weather, Curry said that four major projects had been delayed, which is why the district applied for the extension.

"I wanted to make sure everyone understood that the revocation of this waiver could result — and likely will result — in the district having to shift $1.9 million into the general fund," Curry told the board. "Once the liquidation waiver was approved, the district — and 26 other districts — acted in good faith that it would be honored."

DPS said it will look for funds in other accounts to cover projects.