Federal government announces release of $17.5M in pandemic aid following Alaska’s resolution of school funding equity concerns

The U.S. Department of Education has resolved a dispute with Alaska over COVID-19 aid disbursement to schools after a one-time funding boost of $175 million this year. Federal officials had previously accused Alaska of cutting funding to high-need school districts during the pandemic, resulting in the withholding of $17.5 million in aid. The Alaska Department of Education denied the cuts and maintained that its funding formula was equitable. Governor Mike Dunleavy vetoed $11.9 million in funding for school districts in June, but federal officials threatened to withhold additional aid unless the state disbursed that amount to schools. The dispute escalated over the past year, with Alaska being designated as a high-risk grantee risking federal funding. However, the U.S. Department of Education reversed course, citing the $175 million one-time funding as resolving equity concerns. Governor Dunleavy and Education Commissioner Deena Bishop celebrated the decision, with Dunleavy criticizing the federal education department. Senator Löki Tobin expressed surprise that the one-time boost had resolved the equity concerns, as she had been told specific funds needed to be allocated to meet federal requirements. The resolution of the dispute signals a victory for Alaska’s education system and provides much-needed relief for schools in the state.

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