U.S. Department of Education shifts key deadline, putting KY schools’ COVID funds at risk

Federal officials shocked superintendents and education leaders around Kentucky late Friday night with this message: The deadline to spend your federal COVID-related dollars has expired.

The original deadline for spending that money earmarked to help public school districts after the pandemic was March 28, 2026.

The new deadline sent by the US Department of Education means the possible loss of at least $52 million, state education officials told the Herald-Leader Tuesday afternoon. That will harm schools and districts across the commonwealth, Education Commissioner Robbie Fletcher told superintendents Tuesday.

That $52 million pot of money includes $34 million requested by 13 districts that should be accessible to spend for the benefit of students, primarily on construction projects or bus purchases, said Jennifer Ginn, spokesperson for KDE, the Kentucky Department of Education.

The year-earlier deadline aligns with President Trump’s recent move to dismantle the US Department of Education. It also happens on the heels of Trump adviser Elon Musk’s plan to slash federal funding and reduce the size of government agencies.

The abrupt change in the deadline has left many districts with committed or spent funds that were promised reimbursement, putting them in a difficult financial position, Fletcher said.

Retaining that March 2026 deadline is crucial for districts to complete such essential projects as construction and bus purchases, which already are under contract and cannot be easily canceled, Fletcher added.

The sudden change also jeopardizes critical initiatives, including the application of new cyber-security software to protect school computers, the continuation of a professional learning program for educators, and implementation of programs that address learning loss.

In February, the federal education department, which President Donald Trump is trying to dismantle, changed how the COVID relief funds were requested by states and processed by the U.S. Department of Education, Fletcher said in an email to superintendents.

Due to that change in process, the Kentucky Department of Education has not received COVID grant funding the next business day as was previously the case.

“At this point in time, we have asked to be reimbursed for nearly $5 million, with no response from (federal officials),” Fletcher said.

Education Week reported last week that state education officials nationwide say “the U.S. Department of Education is blocking access to tens of millions of dollars meant for K-12 schools, an issue exacerbated by the Trump administration’s aggressive recent efforts to slash the federal agency’s workforce.”

The problems have affected at least seven states, Education Week reported.

In court filings, education officials in California, New York, and Illinois said the federal agency failed to reimburse funds since early March. Additionally, Kentucky, Kansas, Missouri and Utah have experienced similar issues, state officials told Education Week.

Then came the Friday message to Kentucky.

“This latest message from (federal officials) will harm a variety of our schools and districts across the state even more. KDE and/or our school districts have already committed or spent these funds because we were promised a liquidation period ending March 2026,” Fletcher told Kentucky superintendents Tuesday.

The letter adds, “However, even though the COVID pandemic and the liquidation period under the applicable regulations have ended, the Department will consider an extension to your liquidation period on an individual project-specific basis.”

Originally, 19 Kentucky school districts asked to have an extended time to fully spend their COVID relief dollars that totaled $84.1 million. There are now 13 districts with $34 million remaining that should be accessible to spend for the benefit of students, primarily on construction projects or bus purchases, based on the original March 28, 2026, deadline Fletcher said.

“There are many projects at KDE for the benefit of our schools and districts that also are in jeopardy due to this sudden change,” Fletcher said.

One of the most high-profile projects at risk is the completion of a Kentucky K-12 cyber defense construction project the state KDE started soon after COVID began five years ago. It is to be fully in place in 2026.

COVID resulted in a significant increase in attempted cyber attacks on Kentucky’s K-12 organizations, to the point that educational organizations are the No. 1 target of cyber criminals from around the world, Fletcher said.

Fayette County Public Schools Deputy Superintendent Houston Barber told the Herald-Leader in a text Tuesday the feds’ new deadline won’t affect the district. “We are unaffected -- already spent our funds.”

The Kentucky Department of Education will request US Education Secretary Linda McMahon to reinstate the March 2026 liquidation deadline previously granted to the Kentucky Department of Education.

Fletcher also is asking superintendents to explain to federal lawmakers how the sudden change in the spending deadline will negatively affect Kentucky schools and districts, particularly the most vulnerable populations in the state.