BIRMINGHAM, Ala. — Selma City Schools could lose nearly $4 million in pandemic relief funding after U.S. Secretary of Education Linda McMahon abruptly ended what states believed was an extension for spending the last of the nation’s K-12 COVID aid.
The decision caught many state education officials off guard, especially those who thought they had up to another year to get final reimbursements in for projects that had already been approved and budgeted.
In a March 28 letter to state school chiefs, McMahon said that regardless of any earlier extensions granted, any unspent federal dollars would expire at the end of the same day.
That puts Selma schools in a tough spot. The high-poverty district, where nine out of ten students are economically disadvantaged, was awarded $22.7 million in the third and final round of COVID relief for schools. Just under $4 million of that is still unspent.
The Selma Board of Education named David Scott as its new superintendent in February following a six-month search and interim leadership that began in August. Scott did not return a request for comment before this article was published.
State Superintendent Eric Mackey said state officials are trying to help Selma access the funds. Like all districts, Selma had to first obligate the money – committing it to specific purchases – by Sept. 30, 2024. But because federal funds are reimbursed after expenses are paid, the district believed it still had time to spend the money and request repayment.
In her letter, McMahon said states can still ask for more time, but only on a case-by-case basis. Any request must explain how an extension would help students recover from the effects of the pandemic and why it deserves special consideration.
“We are still receiving clarification of the new process and hope to have a clear pathway to draw down these funds in the near future,” Mackey told Alabama Daily News.
Selma’s application for funding, approved in October 2021, laid out a range of spending and improvements: nearly $11 million for facility upgrades like new heating and air units, and renovations at the School of Discovery, which had to be closed after mold was found and it was deemed “uninhabitable.”
Part of the building was ultimately demolished to make way for a new arts magnet school. Local media reports said the former superintendent planned to use COVID relief dollars to pay for most of the project. The district officially broke ground on the new school in February 2024.
The district’s plan also showed a $1.6 million investment in new technology, $225,000 for school buses, $400,000 for virtual classes for elementary students and $383,000 on cleaning supplies and protective gear. The remainder would be spent on instruction and academic-related interventions. It’s unclear how the remaining $3.9 million in funding was planned to be used.
Alabama is one of 41 states, plus the District of Columbia and Puerto Rico, that received a “late liquidation” extension, according to a spreadsheet attributed to the U.S. Department of Education and posted online by education news site The 74.
One state, Nevada, had finished spending its funds by March 6, the date on the spreadsheet. The remaining states have a combined $3.1 billion left to spend.
Eleven states had more than $100 million left to spend. California had the most, with $581.2 million. Neighboring states had more remaining than Alabama:
- Tennessee- $136 million
- Mississippi – $107.5 million
- Florida – $98 million
- Georgia- $12.8 million
In Alabama, $11 million remained unspent – less than 1% of the $2 billion the state received under the American Rescue Plan Act. That funding came through the third round of Elementary and Secondary School Emergency Relief Fund, commonly called ESSER 3.
Although districts had to obligate their funds by Sept. 30, they were given additional time to spend the money and get reimbursed.
According to the state’s COVID funding dashboard, almost every Alabama district used at least 95% of their allocation within allotted timeframes. But not every dollar was spent. Of the $11 million was left unused, more than a third of that from Selma City Schools.
Eight districts left between $298,000 and $2 million unspent, according to the state’s dashboard:
- Dallas County – $2 million
- Hoover City – $894,000
- Elba City – $745,00
- Shelby County – $586,000
- Birmingham City – $534,000
- Linden City – $414,000
- Opelika City – $351,000
- Midfield City – $298,000
Eighteen other districts left $200,000 or less unspent. The remaining 135 school districts, which includes some charter schools, spent 100% of their funding.