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Prairie State Wire

Thursday, April 3, 2025

Trump administration ends liquidation extension for Illinois school funds

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Dr. Donna S. Leak Vice-Chair | Illinois State Board of Education

Dr. Donna S. Leak Vice-Chair | Illinois State Board of Education

The Trump administration has decided to withdraw funds for Illinois schools, reversing a previous approval from the U.S. Department of Education. The decision affects $77.25 million in federal pandemic relief funds originally intended to aid Illinois' most needful students. School districts must now reevaluate how to maintain essential services without these funds.

Governor JB Pritzker expressed concern on the matter, saying, “Our most at-risk students are having resources their districts were promised stripped away for political gain, and Illinois will not stand by and let this kind of cruelty abide." He emphasized the funds were crucial for supporting districts needing every possible resource.

State Superintendent of Education Dr. Tony Sanders described the situation as a major setback. “This decision is a devastating blow to the students and schools that were relying on these approved funds to provide critical services," he stated. Sanders highlighted that financial stability is vital for districts to plan effectively, and the sudden change undermines this stability, endangering important programs for student learning recovery.

Illinois had already allocated 98.5% of its federal pandemic relief funds. The remaining $77.25 million, although committed in contracts and orders, remains unspent. The state had earlier gained approval to liquidate these funds by March 28, 2026, due to challenges like supply chain disruptions and staffing shortages. However, the new revocation sets the liquidation deadline to March 28, 2025, coinciding with the announcement, resulting in immediate inaccessibility for schools and grantees.

The rescission affects 27 school districts, two Regional Offices of Education, and three additional grantees. These entities needed the funds for essential services such as transportation for homeless children, adaptive technology for students with disabilities, certification for teachers of English learners, and tutoring services. Without the funds, these services may end.

A communication from the U.S. Department of Education indicates states could resubmit extension requests, though this adds an extra administrative layer, potentially risking access to vital resources for the schools and students in need.

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