In a meeting on Tuesday, the Maryland State Department of Education (MSDE) updated the State Board of Education on the fate of federal funds that were called into question in late March. While $418M in lost funding was estimated, the update from State Superintendent Carey Wright shared that number is closer to $232.1M as of late. State and local funds could be on the hook to cover the gap.

State officials claim the potential loss of federal funding could translate to the elimination of approximately 2,000 teaching positions or the discontinuation of pre-kindergarten programs serving 12,000 students. During the meeting Superintendent Wright clarified that if the money does not come through it will require a collaboration with the Governor and state legislature to come up with a plan that could include both the state and local budgets taking a hit.

Of the outstanding reimbursements more than half – about $144.9M – comes from the American Rescue Plan’s Elementary and Secondary School Emergency Relief. According to MSDE the federal government has not reimbursed the state for at least $127.5M that has been spent, with an additional $104.6M not reimbursed to the local school systems.

This shortfall stems from the U.S. Department of Education’s abrupt cancellation of extensions that allowed schools to spend down remaining COVID-19 relief funds. The funds in jeopardy were allocated for essential services such as mental health support, teacher professional development, and assistance for students experiencing homelessness. Shortly after the announcement Attorney General Anthony Brown joined 19 other state attorneys general in a lawsuit challenging the decision.

Watch the April 29 meeting of the Maryland State Board of Education.