Gloucester City is among 20 N.J. school districts that could lose millions in COVID relief funds under Trump
Gov. Phil Murphy said New Jersey school districts will lose a total of $85 million under a revised deadline announced last week.
Gloucester City School Superintendent Sean Gorman was stunned to learn this week that President Donald Trump’s administration was putting a stop payment on $1.4 million in COVID relief funds to his district.
New Jersey Gov. Phil Murphy notified 20 districts Monday about the federal funding cuts, totaling $85 million and described them in a news release as an attempt to “claw back” funding for critical infrastructure projects.
“These cuts are reckless and irresponsible, allowing us very little time for contingency plans,” Murphy, a Democrat, said in a statement. “At a time of unprecedented chaos and uncertainty at the federal level, Washington is failing the next generation.”
New Jersey schools stand to lose millions of dollars in federal aid after Education Secretary Linda McMahon announced a revised deadline Friday for schools to spend COVID relief money. Some school districts had received extensions to spend that money, but McMahon revoked those approvals.
The abrupt notice sent states and districts scrambling to figure out next steps. The funds were approved in 2021 under the American Rescue Plan.
Gorman said his district planned to seek $1.4 million in reimbursements from the federal government for three projects.
“How can you do this to us? This money was promised to us,” Gorman said.
Murphy was one of several governors across the country to sound the alarm about the lost funding. Pennsylvania Gov. Josh Shapiro, also a Democrat, has not addressed the revised deadline. A spokesperson for the Pennsylvania Department of Education said officials are “considering all options to ensure that all funds promised to Pennsylvania are reimbursed appropriately.”
Here’s what to know about the funding that New Jersey officials say is in jeopardy:
How many New Jersey districts were affected?
Murphy said 20 districts are facing federal funding cuts, including Gloucester City, Delran, Bridgeton, and Penns-Grove-Carneys Point in South Jersey.
Why were states given the funds?
The federal government awarded about $200 billion in COVID relief funds in 2020-2021 to help schools with the impact of the pandemic, when schools were closed and students were learning remotely.
The funds could be used to assist students with learning loss, tutoring, mental health services, and cover construction projects.
When was the deadline to spend the funds?
According to Education Week, schools had to designate the money for specific projects by the end of September 2024 and spend it by Jan. 30, 2025.
Some states requested extensions to allow schools 14 additional months.
New Jersey obtained approval for one-time extensions for districts in certain circumstances, according to Laura Fredrick, a spokesperson for the state Department of Education.
Fredrick said districts were given more time to seek reimbursements for capital projects such as window replacements or HVAC upgrades that were delayed by supply chain delays or issues beyond their control.
The amounts ranged from less than $100,000 to $17 million, Fredrick said, and a new deadline was set for March 28, 2026, she said.
Why the sudden deadline to spend the funds?
In a letter to state education chiefs, McMahon said more time “was not justified” and that states and school districts “had had ample time to liquidate obligations.”
“Extending deadlines for COVID-related grants, which are in fact taxpayer funds, years after the COVID pandemic ended is not consistent with the Department’s priorities and thus not a worthwhile exercise of its discretion,” she wrote.
Can districts appeal?
McMahon said the department would consider extensions “on an individual project-specific basis.”
Gorman and Delran Superintendent Lisa Della Vecchia both said they plan to ask the U.S. Department of Education to reconsider.
Della Vecchia, in a letter to the Delran school community, said the district had been expecting more than $717,000 in reimbursements for HVAC upgrades at its high school and middle schools.
In Gloucester City, crews are still working on playground improvements at Cold Springs Elementary, Gorman said. Two other projects, a renovated life skills classroom and flooring in a media center, have been completed, he said.
“It would be a major setback and pushback of other projects,” Gorman said Thursday.
Both districts said capital reserve funds would be used to cover the costs if they are unable to get federal reimbursement. There are no plans to raise taxes or cut staff.
Inquirer staff writer Maddie Hanna contributed to this article.