Murray, Sanders, DeLauro, Scott, Baldwin Demand McMahon Reverse Abrupt Policy Change Halting Funding for Schools Nationwide
Top appropriators and authorizers press Trump’s Department of Education for details about its’ abrupt halt of funding for state governments and school districts that adds a bureaucratic hurdle to reimbursement and will harm student recovery following the pandemic
Washington, D.C. — Today, Senator Patty Murray (D-WA), Vice Chair of the Senate Appropriations Committee, Senator Bernie Sanders (I-VT), Ranking Member of the Senate Committee on Health, Education, Labor, and Pensions (HELP), Congresswoman Rosa DeLauro (D-CT-03), Ranking Member of the House Appropriations Committee, Congressman Robert C. “Bobby” Scott (D-VA-03), Ranking Member of the House Committee on Education and Workforce, and Senator Tammy Baldwin (D-WI), Ranking Member of the Senate Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies, led a letter to Secretary Linda McMahon demanding a reversal of a new policy the Department of Education announced recently that suddenly upended departmental policy and imposed new red tape on states, which will prevent them from accessing pandemic relief funds they are counting on to support students’ learning.
In their letter, the lawmakers press McMahon for immediate reversal of the Department’s revision to its longstanding liquidation extension policy for COVID-19 education recovery funding—warning that the Department’s change, along with the myriad other harmful actions taken at ED recently, seriously jeopardizes students’ learning and growth.
“We write to request the immediate reversal of the Department of Education’s recent March 28, 2025, action to revise the liquidation extension policy for COVID-19 relief funds,” write the lawmakers. “Just over a month ago, the Department announced a policy change to the longstanding extension policy that imposed an additional step for processing of extension reimbursements. … However, on March 28, 2025, with many state extension requests having been approved more than six months ago, the Department suddenly announced on March 28 that ‘the Department is modifying the liquidation period to end on March 28, 2025,’ the very same day as the announcement.”
“In short,” the lawmakers state, “the Department changed the spending rules it affirmed just one month ago, without providing any notice, and imposing more federal red tape.”
The lawmakers continue: “This abrupt and chaotic revision of policy is not helpful to students whose states, school districts, or institutions of higher education are uncertain about the Department’s commitments to implementing federal funding designed to support students. The March 28th decision is an imposition of an unauthorized layer of bureaucratic red tape on the expenditure of resources passed by Congress to support learning recovery for our nation’s students.”
The lawmakers note that the abrupt change—coupled with the mass firings at ED—seriously threaten the ability of schools to support students’ learning: “When combined with the massive reduction in force announced earlier this month, the Department jeopardizes an estimated $4 billion from the Coronavirus Response and Relief Supplemental Appropriations Act, 2021 and American Rescue Plan Act of 2021 in nearly all of our states and outlying areas and roughly 1,000 school districts nationwide. This action is particularly harmful to rural school districts that faced the greatest disruptions during the authorized program period. This will also have a disproportionate impact on $800 million reserved for identification and support for students experiencing homelessness, which was implemented slowly in many states. The March 28th decision of the Department improperly imposes its will on state and local budget decisions in a manner not contemplated by Congress.”
The lawmakers note their alarm about the Department’s lack of recognition of the lasting effects of the COVID-19 pandemic on students, with the latest National Assessment of Educational Progress (NAEP) scores showing national scores are below pre-pandemic levels in all grades and subjects. “We are alarmed by your lack of a recognition of the lasting effects of the COVID-19 pandemic on our nation’s students,” write the lawmakers. “Years after the COVID-19 pandemic, our schools and communities still have much work to do to help students recover and the Department’s termination of the remaining resources Congress passed for that purpose will only serve to delay and undermine our students’ recovery.”
They also note Congress provided flexibility when providing the funding to ensure it best supports communities across the country: “Congress intended the Secretary to support states and districts in their use of the flexibility under the law to ensure the unique needs of their communities were met and to implement evidence-based learning loss interventions. The Department is now trying to change the spending rules and impose an administrative hurdle by stating ‘the Department will consider an extension to your liquidation period on an individual project-specific basis.’…We are astonished by the amount of hypocrisy here from an administration that has repeatedly said it wants to return education to the states, including your recent statement that ‘Education is fundamentally a state responsibility. Instead of filtering resources through layers of federal red tape, we will empower states…’ Now, it appears the Department is turning its back on states by arbitrarily imposing more federal red tape.”
The lawmakers also called out that while the Trump administration works to cut off this funding for schools, it is pushing to pass new tax cuts for billionaires: “Let’s be very clear: The abrupt change in the liquidation extension policy is yet another way this administration is seeking to strip educational opportunities for students in order to pay for tax cuts for billionaires and large corporations. President Trump and Congressional Republicans are intent in claiming any savings they can in the federal budget that they intend to use to pay for their tax cuts for billionaires and large corporations.”
“We believe there is a better way,” they conclude. “We urge you to immediately rescind your March 28 revision to the longstanding liquidation extension policy. Further, we believe you should work with us to start properly executing our federal education laws as Congress intended.”
In addition to Senators Murray, Sanders, and Baldwin, the letter was signed by Angela Alsobrooks (D-MD), Richard Blumenthal (D-CT), Dick Durbin (D-IL), Ruben Gallego (D-AZ), Mazie Hirono (D-HI), Tim Kaine (D-VA), Angus King (I-ME), Ed Markey (D-MA), Chris Murphy (D-CT), Alex Padilla (D-CA), Jack Reed (D-RI), Jeanne Shaheen (D-MO), Elissa Slotkin (D-MI), Chris Van Hollen (D-MD), Mark Warner (D-VA), Elizabeth Warren (D-MA), and Ron Wyden (D-OR) in the Senate.
In addition to Representatives DeLauro and Scott, the letter was signed by Alma Adams (D, NC-12), Donald Beyer (D, VA-08), Suzanne Bonamici (D, OR-01), Julia Brownley (D, CA-26), Shontel Brown (D, OH-11), André Carson (D, IN-07), Greg Casar (D, TX-35), Sean Casten (D, IL-06), Joaquin Castro (D, TX-20), Steve Cohen (D, TN-09), Joe Courtney (D, CT-02), Danny Davis (D, IL-07), Diana DeGette (D, CO-01), Chris Deluzio (D, PA-17), Mark DeSaulnier (D, CA-10), Sarah Elfreth (D, MD-03), Veronica Escobar (D, TX-16), Adriano Espaillat (D, NY-13), Dwight Evans (D, PA-03), Shomari Figures (D, AL-02), Jesús García (D, IL-04), Sylvia Garcia (D, TX-29), Vicente Gonzalez (D, TX-34), Jahana Hayes (D, CT-05), Chrissy Houlahan (D, PA-06), Jonathan Jackson (D, IL-01), Hank Johnson (D, GA-04), Robin Kelly (D, IL-02), Timothy Kennedy (D, NY-26), John Larson (D, CT-01), Summer Lee (D, PA-12), Lucy McBath (D, GA-06), Sarah McBride (D, DE-01), Jennifer McClellan (D, VA-04), Betty McCollum (D, MN-04), Kristen McDonald Rivet (D, MI-08), Jim McGovern (D, MA-02), LaMonica McIver (D, NJ-10), Donald Norcross (D, NJ-01), Johnny Olszewski (D, MD-02), Chellie Pingree (D, ME-01), Mark Pocan (D, MI-02), Andrea Salinas (D, OR-06), Linda Sánchez (D, CA-38), Terri Sewell (D, AL-07), Mikie Sherrill (D, NJ-11), Lateefah Simon (D, CA-12), Darren Soto (D, FL-09), Haley Stevens (D, MI-11), Mark Takano (D, CA-39), Dina Titus (D, NV-01), Rashida Tlaib (D, MI-12), Bonnie Watson Coleman (D, NY-12), Frederica Wilson (D, FL-24), and Eleanor Holmes Norton (D, DC-01) in the House.
Full text of the letter is available HERE and below:
Dear Secretary McMahon:
We write to request the immediate reversal of the Department of Education’s (“the Department”) recent March 28, 2025, action to revise the liquidation extension policy for COVID-19 relief funds. Just over a month ago, the Department announced a policy change to the longstanding extension policy that imposed an additional step for processing of extension reimbursements. That policy stated “Beginning today, all future payments under the CARES Act, CRRSA Act, and ARP Act spent on allowable expenditures must be paid by the states in advance and then submitted to the U.S. Department of Education for reimbursement.” While the Department’s action added an unnecessary burden on states, it continued the longstanding extension policy established years ago in stating “All [COVID-19 Pandemic relief funding] expenditures must fall under the approved expenditures as outlined in guidance for ESSER, ARPA, and HEERF.”
However, on March 28, 2025, with many state extension requests having been approved more than six months ago, the Department suddenly announced that “the Department is modifying the liquidation period to end on March 28, 2025”, the very same day as the announcement. Specifically, the Department stated that “The extension approval was issued recently, so any reliance interests developed are minimal...So you could not rely on the Department adhering to its original decision.” In short, the Department changed the spending rules it affirmed just one month ago, without providing any notice, and imposing more federal red tape.
This abrupt and chaotic revision of policy is not helpful to students whose states, school districts, or institutions of higher education are uncertain about the Department’s commitments to implementing federal funding designed to support students. The March 28th decision is an imposition of an unauthorized layer of bureaucratic red tape on the expenditure of resources passed by Congress to support learning recovery for our nation’s students. When combined with the massive reduction in force announced earlier this month, the Department jeopardizes an estimated $4 billion from the Coronavirus Response and Relief Supplemental Appropriations Act, 2021 and American Rescue Plan Act of 2021(“ARP Act”) in nearly all of our states and outlying areas and roughly 1,000 school districts nationwide. This action is particularly harmful to rural school districts that faced the greatest disruptions during the authorized program period. This will also have a disproportionate impact on $800 million reserved for identification and support for students experiencing homelessness, which was implemented slowly in many states. The March 28th decision of the Department improperly imposes its will on state and local budget decisions in a manner not contemplated by Congress.
Second, we are alarmed by your lack of a recognition of the lasting effects of the COVID-19 pandemic on our nation’s students. The Department’s March 28 policy change asserts “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.” We are surprised to learn the Department is unaware of recent results of the National Assessment of Educational Progress (“NAEP”) which show “National scores are below pre-pandemic levels (2019) in ALL tested grades and subjects.” NAEP results also reveal “Gaps are growing between higher-performing and lower-performing students.” Further, chronic absenteeism still is too high with the latest data indicating “a majority of students still attended schools with 20% or higher levels of chronic absence. This serious absenteeism is in stark contrast to 2019, when slightly over a quarter of schools experienced such high levels of chronic absence.” Years after the COVID-19 pandemic, our schools and communities still have much work to do to help students recover and the Department’s termination of the remaining resources Congress passed for that purpose will only serve to delay and undermine our students’ recovery.
Third, Congress intended the Secretary to support states and districts in their use of the flexibility under the law to ensure the unique needs of their communities were met and to implement evidence-based learning loss interventions. The Department is now trying to change the spending rules and impose an administrative hurdle by stating “the Department will consider an extension to your liquidation period on an individual project-specific basis.” This is despite the fact that such extensions to liquidation periods were noticed more than one year ago, with some granted more than six months ago, and that states assured to the Department that “The SEA will ensure that LEAs [school districts] use ARP ESSER funds for activities allowable under section 2001(e) of the ARP.” We are astonished by the amount of hypocrisy here from an administration that has repeatedly said it wants to return education to the states, including your recent statement that “Education is fundamentally a state responsibility. Instead of filtering resources through layers of federal red tape, we will empower states…”. Now, it appears the Department is turning its back on states by arbitrarily imposing more federal red tape.
We would be heartened if the Department’s new policy was really intended to better support students. However, actions of the past two months tell a starkly different story. The Department has cancelled hundreds of millions in teacher training grants that were at work in addressing educator shortages and improving the quality of instruction in our schools. The Department has cancelled hundreds of millions of research and evaluation contracts on critical issues like an evaluation of transition supports for students with disabilities, which was intended to provide states and school districts with high quality evidence on approaches to support students with disabilities with their transition to post-school outcomes. The Department also cancelled an evaluation of the programs that receive the largest amount of funding appropriated for the Elementary and Secondary Education Act, depriving Congress and the Department of critical information about the implementation of those programs. The Department cancelled contracts for the Comprehensive Centers program, which—in addition to being statutorily required—were poised to provide effective capacity building support and technical assistance to states, school systems, and schools in addressing chronic absenteeism, and math and literacy learning, among other locally and regionally identified challenges. The Department also canceled the Long Term Trend NAEP for 17 year olds, which has been providing data on student achievement for decades. The Department has implemented a massive dismantling and reduction in staff, which has reduced the number of staff available at the Office for Civil Rights to protect the rights of all students. Finally, the massive reduction also appears to have delayed the processing of COVID-19 relief reimbursement requests prior to the announcement of the changed policy that is the subject of this letter.
Let’s be very clear: The abrupt change in the liquidation extension policy is yet another way this administration is seeking to strip educational opportunities for students in order to pay for tax cuts for billionaires and large corporations. President Trump and Congressional Republicans are intent in claiming any savings they can in the federal budget that they intend to use to pay for their tax cuts for billionaires and large corporations. It is appalling to us that those billionaire and corporate giveaways are valued over the students in rural school districts that faced supply chain disruptions during the COVID-19 pandemic that led to the districts’ need for these liquidation extensions, valued over students experiencing homelessness who have seen the Elementary and Secondary School Emergency Relief funds dedicated to them spent down slowly, and valued over so many other students that will be attending schools that are already facing difficult budget choices for the next school year without the additional burden of this changed policy. That is, unless states undertake the newest burden put in place by your Department and are able to navigate the Department’s bureaucratic maze and receive funds for projects that may have been committed to years ago.
We believe there is a better way. We urge you to immediately rescind your March 28 revision to the longstanding liquidation extension policy. Further, we believe you should work with us to start properly executing our federal education laws as Congress intended.
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