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Lawmakers warn of $400M gap as federal emergency funds wind down; department seeks waivers and state replacements
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Summary
Committee members pressed the Department of Education over reliance on non‑recurring federal funds that expire in FY2024, estimating a roughly $400 million net drop in combined federal/state resources and asking which operating items would be affected if state funds are not identified.
Several legislators told the department that a substantial portion of recent education spending has been supported with non‑recurring federal grants that expire this fiscal year, leaving a projected net reduction in combined funding for FY25 unless state funds fill the gap. During questioning, Senator Juan Zaragoza asked plainly, "Con esa baja de cuatrocientos millones en presupuesto combinado... ¿qué es lo más importante que se va a afectar?" — pressing the department to identify concrete programs or services that could be curtailed.
Department staff and subsecretary Yulimar Octaviani responded that the expiration of non‑recurrent federal awards will reduce available federal resources for the next fiscal year and that certain operational lines — notably student transportation, security, maintenance and the continuation of the $1,000 monthly teacher supplement — are among the most at risk. Officials said the department has requested waivers ("wavers") and liquidation extensions where applicable; staff described waivers already sought and noted some emergency funds can be liquidated into early 2025, while others formally expire Sept. 30, 2024.
Octaviani said the department's FY25 budget request includes $399.9 million above the fiscal‑oversight baseline to address recurring operational needs previously subsidized by one‑time federal inflows. She warned that, if state recurring funds do not replace those federal amounts, the department would have to prioritize core recurrent services and could see reductions in premium pay, some program pilots and other line items that had relied on one‑time federal dollars.
Committee members requested a full reconciliation showing which program dollars were previously funded with non‑recurring federal resources, the amounts at risk when those awards expire, and the department's plan to transition eligible services to state funding or alternate federal mechanisms.
