On April 4, 2025, the U.S. Department of Education (USDE) rescinded the liquidation of hundreds of millions of dollars in emergency pandemic funds that were previously approved for extensions for the spending. The unexpected decision notified state education leaders in a letter that said they are responsible for laying out money for the expenses before they can seek USDE reimbursement.

According to U.S. Secretary of Education Linda McMahon, the spending extensions were “not justified,” and “extending deadlines for COVID-related grants, which are in fact taxpayer funds, years after the COVID pandemic ended is not consistent with the Department’s priorities and thus not a worthwhile exercise of its discretion.” As of late February, about $4.4 billion of $201.3 billion remained in unspent funds from the three federal relief allocations under the Elementary and Secondary School Emergency Relief fund approved by Congress.

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