On March 28, the Kentucky Department of Education (KDE) received a letter from the U.S. Secretary of Education stating that the time to spend all federal funds related to COVID relief was amended to end on March 28. The action came after Kentucky was notified by the U.S. Department of Education (USED) in September 2024 that it could spend its remaining funds through March 2026.
The March 28 letter said USED will consider an extension to the liquidation period on an individual project-specific basis. KDE has collected that information from the districts and has submitted the request for the districts and the unspent funds KDE had remaining.
“While we still hope to have these projects approved so our districts can move forward, they should not have to go through this extra step and the uncertainty because these projects had already been approved by USED,” Commissioner of Education Robbie Fletcher said. “We expect the federal government to honor its commitments to our schools and districts.
“Compounding the problem is that in order to get the extension to spend this money from USED, school districts and KDE have signed contracts that obligated how the money would be spent. Those contracts still exist, and some hard decisions have to be made about how to pay for these projects if USED does not honor its previous commitments.”
Thirteen Kentucky school districts have been affected by the funding timeline change. The following is how two Northern Kentucky districts and KDE are being impacted by the withdrawal of previously approved ESSER funding.
Boone County, $1,270,748.85 in funding rescinded: Boone County had already paid $600,000 in upfront costs to purchase high-quality instructional resources in math and language arts for elementary school students. The rest of the funds the district received were already encumbered for purchases similarly related to accelerating learning post-COVID.
While Boone County Superintendent Jeff Hauswald said the district’s reserve fund can help cushion the loss of the $600,000 they have already paid, it is, “going to reduce funding for future needs.”
Covington Independent, $567,357.58 in funding rescinded: Covington Independent was spending its COVID money to upgrade the main electrical component – switch gear – that will provide electricity to the newly installed uni-vents, heaters, air handlers, etc., which significantly impacts the ventilation throughout Holmes Middle School and Holmes High School. Enhanced ventilation reduces the risk of airborne illnesses, creating a safer learning environment that can lead to increased attendance and participation.
Additionally, the updated electrical system will enable all spaces to be fully operational, allowing for extended summer educational programs to address the learning loss that occurred during COVID. The district has been waiting more than a year to receive some of the necessary parts due to supply chain issues.
In addition to the districts, KDE had $18 million in unspent COVID relief money that had been approved for the extended liquidation. Included in that amount were these projects:
• More than $300,000 was to be used to help four districts enhance career and technical education for students with disabilities.
• More than $650,000 was earmarked for 10 school districts to turn a school bus into an Early Learning Bus classroom.
• Almost $1.7 million was to be used to expand the number of educators who could participate in the Language Essentials for Teachers of Reading and Spelling (LETRS) professional learning. LETRS equips and empowers educators with the knowledge needed to build strong foundational literacy skills.
• $995,000 was earmarked to fund an adaptive kindergarten readiness pilot project required under House Bill 695 (2024).
• Just over $1.4 million had been designated for projects at the Kentucky School for the Deaf, including maintenance, furniture and almost $621,000 for a Makerspace Arts lab.
• Just over $407,000 was to be used to expand the reach of the Kentucky Governor’s School for the Arts program this summer by allowing for a second camp that expands the program’s reach to about 250 more students.
• $150,000 was to be used to expand the reach of the Kentucky Governor’s School for Entrepreneurs program this summer with a second program.
• Almost $5 million was designated to help 15 districts designated for Targeted Support and Improvement and Comprehensive Support and Improvement provide before- and after-school initiatives for students.
• Almost $1.6 million was to be used to support summer learning for students in 13 districts designated for Targeted Support and Improvement and Comprehensive Support and Improvement.
• Almost $4.3 million was designated for the KDE Office of Education Technology to improve the security and efficiency of data systems, offer online registration through Infinite Campus for districts and to pay for electronic transcripts to help students in their next steps after high school graduation.
Kentucky Department of Education