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Maryland faces $418M ‘catastrophic’ loss in pandemic-era relief funds

  • On Friday, March 28, the U.S. Department of Education notified the Maryland State Department of Education that it would not reimburse federal pandemic recovery funds, putting over $400 million in school funding at risk.
  • This decision reverses previous approvals to spend remaining COVID-19 recovery funds designed to help schools recover from the pandemic through initiatives like tutoring, social-emotional wellness programs, and summer learning.
  • The cancelled funds were already committed to Maryland's 24 school systems for programs and services, including some construction projects, and approximately $305.2 million has already been spent but not reimbursed.
  • According to state education leaders, the rescission of funds, announced in a letter from U.S. Education Secretary Linda McMahon, dated Friday at 5 p.m., has caused shock and will have catastrophic budget implications, potentially affecting staffing, programs, and services to students across Maryland.
  • Maryland education leaders are exploring legal options and working with state lawmakers to address the significant disruption caused by the federal agency's decision, with some indicating that existing programs may be halted and state spending cuts may be necessary.
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abc 7 WJLA broke the news in Washington, United States on Monday, March 31, 2025.
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