Vermont education officials scramble after DOE signals review of COVID-era reimbursements

House Education Committee members heard on April 2 that new guidance from the U.S. Department of Education has sharply changed how the department will handle liquidation-extension requests for COVID-era funds, creating immediate reimbursement risk for Vermont districts and new work for the Agency of Education.

Shildrick Campbell, deputy secretary of education, told the committee that national meetings last week gave state chiefs some assurances but that a later Department of Education letter introduced new uncertainty: “We were hearing rumors that, the Department of Ed was going to release, a directive that basically froze access to those funds by 5PM.” He said the agency was able to submit $1,300,000 for reimbursement before the department’s letter was posted at 5:03 p.m.

That letter, Campbell said, announced the department would review requests “on a project-by-project basis” and disavowed commitments made under the previous administration. Under the earlier approach, states that gave preliminary approval to district reimbursement requests were told districts could proceed with activities; the new letter alters review standards and the process for seeking extended liquidation authority for ESSER and related COVID-era funds.

Why it matters: Vermont officials estimate local education agencies (LEAs) have roughly $16.7 million of potential exposure tied to liquidation-extension activity, with the state education agency’s own exposure much smaller (about $360,000 at the time of the briefing). Campbell warned that exposure varies by…