Mississippi Schools Stand to Lose $137M in Federal Funding

Mississippi schools stand to lose $137,221,346 in federal funds due to the U.S. Department of Education (USDE) clawing back its previously approved liquidation deadline of March 31, 2026, for COVID relief funds. U.S. Secretary of Education Linda McMahon notified state education agencies on March 28 that USDE ended the liquidation of these funds effective that date, but that the department would consider an extension on an individual, project-specific basis. On April 2, MDE responded to Secretary McMahon and explained the harmful impact this decision will have on our state’s students, educators, and school communities, especially given that districts have contractual obligations that cannot simply be terminated. MDE requested that the USDE reinstate the March 31, 2026, liquidation deadline. MDE’s guidance to local districts on this matter includes pausing services and local construction projects.