ANNAPOLIS, Md. — Maryland is staring down the barrel of a $418 million education shortfall after the U.S. Department of Education, under President Donald Trump’s administration, abruptly revoked reimbursement for pandemic-era relief funds — money that had already been approved, spent, and contractually obligated by school districts across the state.
Late on a Friday evening in March, Education Secretary Linda McMahon issued a letter nullifying a spending extension granted under President Joe Biden’s administration. The extension, originally approved through March 2026, allowed states to finish delayed projects and sustain ongoing learning recovery programs impacted by pandemic disruptions. That funding is now retroactively pulled — despite prior federal approval.
In an emergency press call, State Board of Education President Joshua Michael said the decision would have “devastating consequences” and warned, “That tutor may not be there next week.”
The reversal directly impacts academic and infrastructure projects across all 24 school districts. Baltimore City, Prince George’s County, Montgomery County, and Baltimore County stand to lose the most. The funds had been used for high-dosage tutoring, HVAC repairs, health room renovations, summer learning programs, and Maryland’s teacher pipeline initiative — all part of the post-COVID education recovery plan previously approved by the federal government.
The move comes as Maryland faces a multi-billion-dollar budget deficit and school systems struggle to meet ambitious reform mandates. In February, The BayNet reported on growing financial pressures tied to the Blueprint for Maryland’s Future — a sweeping state-led education overhaul that districts warned was unsustainable without additional funding. Now, the backslide has deepened.
“The federal government must keep its word to students, educators, and families,” State Superintendent Carey Wright said. “This jeopardizes over $400 million in funding that was already committed to classrooms across Maryland.”
Reversal, Retraction, and Repercussions
According to Education Department spokesperson Madi Biedermann, the justification for the clawback is that the pandemic is over and the funds should return to the U.S. Treasury. She said the 2024 extensions set an “irresponsible precedent” and referenced “numerous documented examples of misuse.”
However, no public evidence has implicated Maryland, and state officials are pushing back. Maryland’s Department of Education said all extension requests were submitted through proper federal channels and approved before funds were used. Delays were largely tied to supply-chain issues and contractor backlogs for HVAC systems, educational software, and construction projects.
“These funds were obligated with full compliance and under explicit federal direction,” Michael said. “It’s beyond frustrating — it’s financially and operationally destabilizing.”
Governor Wes Moore’s administration is exploring legal recourse. Maryland Attorney General Anthony Brown is coordinating with other impacted states, and Maryland’s congressional delegation has requested a federal review.
At a March press availability, Moore said the state would not accept the rollback without a fight.
“We do not abandon families. We do not abandon students. We will challenge this,” Moore said. “We don’t leave families and students to eat the cost of a federal reversal.”
Budget Dominoes Already Falling
Even before the rescinded funds, Maryland lawmakers were grappling with a projected $3 billion structural gap in the fiscal 2026 budget. The $418 million loss adds significant pressure — equal to roughly 10% of Maryland’s annual K–12 education aid.
To some lawmakers, the decision undermines the Blueprint for Maryland’s Future. As reported in The BayNet’s February coverage, districts are already struggling to fund new teacher pay scales and instructional mandates. The loss of federal relief funding further weakens the foundation of the Blueprint’s long-term vision.
In response, Senate leaders passed language requiring the state to develop a contingency strategy if cumulative federal education cuts exceed $1 billion — a threshold that no longer feels theoretical.
Southern Maryland Caught in the Middle
In Charles, Calvert, and St. Mary’s counties, school leaders are now reviewing budgets line by line to determine which programs and staff are left unfunded. Though these counties may not be among the hardest hit, they are not immune. CARES Act-funded positions supporting mental health, literacy, and school-based health services may face cuts or elimination.
While political blame circulates, Superintendent Wright and her team are focused on mitigating disruption in classrooms.
“This decision threatens to derail the progress we’ve made since the pandemic,” Wright said. “We’re doing everything we can to prevent that disruption from reaching the classroom.”
Contact our news desk atnews@thebaynet.com
