Alaska emerges victorious in a heated dispute with the U.S. Department of Education over COVID-19 relief funds, securing the release of $17.4 million in withheld grants.
At a Glance
- U.S. Department of Education initially labeled Alaska a “high-risk grantee” for alleged mismanagement of COVID-19 relief funds
- Alaska received $359 million in federal COVID funding, with $30 million earmarked for high-need schools
- The state disputed federal claims, arguing it followed its usual funding formula
- Federal officials retracted their stance, acknowledging Alaska’s compliance and releasing withheld funds
- Governor Mike Dunleavy criticized the federal allegations as meritless and wasteful
Federal Accusations and Alaska’s Defense
The U.S. Department of Education initially accused Alaska of failing to distribute COVID-19 relief funds equitably among school districts. The department labeled Alaska as a “high-risk grantee,” a designation that threatened to impact the state’s eligibility for future federal education grants. The controversy centered around the allocation of $359 million in federal COVID funding, with a specific requirement to direct $30 million to the highest-need schools in four districts.
Alaska’s Education Commissioner Deena Bishop strongly refuted these claims. “This equalized funding approach did not change during the COVID-19 pandemic. Alaska did not reduce per-pupil spending on education in any of our school districts in order to take advantage of federal funds,” Bishop said. The state maintained that it had followed its usual funding formula, which is based on enrollment rather than reducing per-pupil spending.
The U.S. Department of Education told state education officials that a one-time funding boost this year had resolved a dispute over how COVID-19 aid was disbursed to Alaska schools. https://t.co/xskpQl0Aoi
— Anchorage Daily News (@adndotcom) December 21, 2024
Federal Pressure and State Response
The federal government’s stance put significant pressure on Alaska. Adam Schott, a representative of the U.S. Department of Education, stated, “Alaska is the only state that has not met or presented a sufficient plan for meeting these requirements.” This claim highlighted the unique position Alaska found itself in among all states regarding compliance with federal “maintenance of equity” requirements.
“It puts us into a very precarious position. I can hope that the federal government would give us some leniency, but they clearly have been for two years. And now they have to use the stick approach because we are not meeting our obligation and commitment that we agreed to when we took these relief funds,” Anchorage Democratic Sen. Löki Tobin said.
The situation escalated when the U.S. Department of Education withheld $17.5 million in federal grant funds from Alaska due to alleged non-compliance with federal equity guidelines. This action prompted Alaska to initiate an appeal process, questioning the federal government’s conclusions and defending its funding approach.
Resolution and Victory for Alaska
In a surprising turn of events, the U.S. Department of Education retracted its stance against Alaska. The federal agency acknowledged that Alaska had indeed complied with the funding requirements and subsequently released the withheld $17.4 million. This decision effectively removed Alaska’s “high-risk grantee” status for COVID grants.
Governor Mike Dunleavy celebrated the outcome, criticizing the initial federal allegations as meritless and a waste of resources. The resolution of this dispute marks a significant victory for Alaska in maintaining its autonomy in educational funding decisions while complying with federal requirements.
