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Board briefed on $524,298 federal Title funds shortfall and legal uncertainty
Summary
District finance staff told the board the federal government has withheld Title I–IV funds approved in last year’s budget, leaving Mifflin County about $524,298 short for 2025–26 and creating uncertainty for staffing funded by those dollars.
District finance staff warned the board that the federal government has withheld Title I–IV allocations that had been expected in the 2025–26 fiscal year, creating an immediate budget gap.
Staff reported the district received roughly $4.4 million from federal sources in 2024–25 and had budgeted about $4.5 million for 2025–26. On June 30 the district was notified that the federal government would withhold those Title funds; staff estimated Mifflin County’s share of the withheld funds at $524,298, which funds the equivalent of roughly four to five staff positions and includes nonpublic school pass‑through amounts.
“Starting the next day, we were going to be short $524,000. So it’s a lot of money for us,” the finance presenter told the board. The speaker said the state has joined a multistate lawsuit (23 states plus Pennsylvania, according to the materials staff shared) challenging the federal action and seeking release of the funds. The presenter said the decision may not be resolved quickly and warned the district cannot count on the state to fill that gap.
Board members asked whether the withheld funds would affect their immediate budgeted positions and whether nonpublic school passthrough requirements remain. The presenter said the situation was unprecedented in their experience and that the state and national organizations are pursuing legal remedies. She said contingency planning is underway, and the board will be updated as more information becomes available.
Ending — The board received the briefing and asked staff to continue monitoring the legal case and to provide options for dealing with the mid‑year shortfall; no formal vote was recorded during the discussion.
