Oversight Republicans Investigate Why DOE Hasn’t Spent COVID Relief Funds, Role of Teachers Unions

Oversight Republicans have launched an investigation into how the U.S. Department of Education has handled billions of COVID-19 relief dollars, raising the alarm about the major learning loss experienced by students.

Republicans on the House Oversight Committee sent a letter to Department of Education Secretary Miguel Cardona demanding documents and answers as to why most of the money has reportedly remained unspent.

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American Schools Have Spent Just Seven Percent of Latest COVID Relief Funds

Over one year after the United States Congress passed the “American Rescue Plan,” the vast majority of school districts that were awarded relief funds have spent less than ten percent of that money.

According to the Washington Free Beacon, approximately $122 billion of the overall $1.9 trillion bill was designated for school districts that were determined to be in distress and in need of relief funds. But of that $122 billion, only about 7 percent has been spent in total across all the school districts nationwide that received some handouts.

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States See Revenue Surge from Income Tax, Federal Aid

Woman with $100 bills spread open in hands

Numerous states have seen their state revenue surge in 2021 fueled by a robust stock market, growing income, federal aid, and increased tax revenue, The Wall Street Journal reported.

States’ revenue soared 24% between April and November from 2020 to 2021, according to a survey conducted by the Urban Institute think tank, the WSJ reported. Thirty-two states said the revenue collected in the fiscal year ending in 2022 was ahead of expectations, according to data from the National Association of State Budget Officers obtained by the WSJ.

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Missouri Education Department Asks for $2.1 Billion in Federal Pandemic Funds

Out of dozens of lines showing millions of dollars for Missouri’s supplemental budget, one sticks out in House Bill 3014.

There are 25 lines, each representing a department or office in Missouri government, requesting a 5.5% cost of living adjustment for all state employees. Gov. Mike Parson announced the increases and a base pay of $15 per hour in December.

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Report: More Than Half of Federal School COVID Relief Funds Used for Non-Pandemic Purposes

This week’s Golden Horseshoe Award goes to the U.S. Department of Education for approving pandemic relief spending plans by school districts that include millions for upgrading athletic facilities, installing security cameras, purchasing floor shiners and other non-pandemic related projects.

Approximately $190 billion in pandemic funding under both the Trump and Biden administrations was allocated to schools to safely reopen and protect teachers and students.

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Michigan Projects Multibillion-Dollar Budget Surplus

Michigan State Capitol

Michigan budget officials Friday reached a consensus on revised economic and revenue figures for fiscal years 2021, 2022 and 2023.

The state general fund and school aid revenues will total $26.5 billion for the current budget year, exceeding January estimates by $2.2 billion. For the new budget cycle beginning Oct. 1, the agency projected revenues will total $26.6 billion, $1.3 billion more than January predictions.

A majority of that unexpected cash is a byproduct of billions of spending via stimulus checks and boosted unemployment benefits, which led to a spike in personal spending and increased state tax revenues by billions more than previously forecast.

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