The Maryland State Department of Education is expecting a loss of $418 million in pandemic-era relief money after the Trump administration abruptly announced Friday night that it will not be reimbursing spending originally promised by the federal government.
In a virtual press conference Monday, Superintendent Carey Wright told local school district leaders to freeze spending on infrastructure upgrades and programs combating COVID-19 learning loss.
“The state and local jurisdictions are already facing steep budget challenges,” Wright said, calling the latest U.S. Department of Education decision “catastrophic.”
Because of pandemic supply chain issues, former President Joe Biden extended the deadline for some school relief fund spending through March 2026. That pot represents 11% of the total $3.2 billion funding that the state of Maryland received — and most of it has already been spent.
“It may be a tutoring program that's going on right now in schools that was intended to go through this school year, or it might be an improvement to the health room in a school,” said Joshua Michael, chair of the state board of education. “And having to tell [districts] to stop spending on those until we have further clarification, that tutor will probably not be there next week.”
Baltimore City and County, along with Prince Georges and Montgomery counties, will be the hardest hit by these cuts, Wright said Monday. But state leaders are still determining the exact level of damage.
In an emailed statement, Baltimore City school leaders said the decision to not reimburse this spending “places an immense financial strain” on the district and “directly threatens critical programs and services that support our students, families, and educators.”
Wright said state leaders are considering all legal options moving forward, and have been in contact with Maryland’s attorney general. Wright said she will also be writing a letter to the Trump administration to attempt to secure some reimbursement by justifying reasons for spending.
Michael said this decision could have long-lasting detrimental impacts on education in Maryland because of the revenue loss.
“If there's no additional funding available from the federal government, or it's not approved, it's going to have to come from somewhere. It may come from future spending,” he said. “The state or locals will end up carrying the bag on this. But the uncertainty in this moment is devastating.”