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NATCHEZ — The U.S. Department of Education has decided to roll back the approved liquidation deadlines for American Rescue Plan Act funds allotted to school districts, a potentially catastrophic move that state officials announced last Friday.

Natchez Adams School District Superintendent Zandra McDonald said this affects approximately $2.8 million in reimbursements that NASD expected for projects that are both complete and ongoing but nearing completion.

“For the past few years, our district has used these funds — approved by both the Mississippi Department of Education and the U.S. Department of Education — to improve student learning, upgrade school buildings, and keep our schools safe. The federal government promised to pay back these expenses,” McDonald said.

“Imagine you agreed to pay for a home project with the promise that you would be fully reimbursed. After you finish the work, the promise is taken back, leaving you with the bill. This is exactly the situation our district now faces.”

Though the original deadline passed in January for liquidating Elementary and Secondary School Emergency Relief funds provided under the federal COVID-19 relief package, Mississippi schools were given an extension until February 2026 to use the funds.

McDonald said the U.S. DOE’s decision affects $1.4 million for renovations and construction nearing completion, $738,639 from February that has not been reimbursed, and an additional $1 million for supplies and services.

NASD holds out hope for the deadline to be reconsidered.

“The U.S. Department of Education mentioned that extension requests will be considered on a case-by-case basis,” McDonald said. “Working with the Mississippi Department of Education, we sincerely hope that federal leaders will reconsider this decision and keep their commitment to support our schools.”