Court restores $51 million in federal funds to Reading School District
The Reading School District will receive $51 million in federal funds following a court order, the district announced Tuesday.
The order reversed an earlier decision by the U.S. Department of Education to revoke the funds, putting the future of the district's Reading High School Innovation Academy in jeopardy.
The facility, underway at Ninth and Douglass streets, is designed to reduce overcrowding at Reading High and expand science, technology, engineering and math, or STEM, academic opportunities for students.
The funds, part of the American Rescue Plan Elementary and Secondary School Emergency Relief, or ESSER, program, had been revoked in March.
Completion of Reading High School Innovation Academy in jeopardy
A preliminary injunction issued by the court requires the U.S. department to distribute the funding as originally approved.
'This is a major victory for our students, our families, and our entire community,' Dr. Jennifer Murray, district superintendent, said in a release. 'The RHS Innovation Academy project will continue to move forward without delay, and we are grateful to all who stood with us, including U.S. Rep. Chrissy Houlahan, who advocated for our district and made clear that these funds were promised and must be delivered.'
The reimbursement follows a multistate lawsuit joined by Gov. Josh Shapiro and 15 other states that challenged the federal government's sudden withholding of more than $185 million owed to Pennsylvania schools.
'We just won in court to stop the (President Donald) Trump Administration's unlawful decision to revoke over $200 million for school districts and education entities across Pennsylvania and break their contract with our Commonwealth,' Shapiro posted on X May 6. 'These dollars are critical for things like student mental health programs, providing internet in schools, and installing new HVAC systems — and thanks to our victory today, the federal government can't renege on its commitments to our kids and leave Pennsylvania taxpayers holding the bag. I'll always take action to ensure Pennsylvania students have the freedom to chart their own course and the opportunity to succeed.'
The federal court ruling allows the state Department of Education to resume processing reimbursements.
The Reading School District's request for the full $51 million has been approved.
The district originally was awarded more than $104 million in federal relief funds and had spent or committed approximately $66 million to construction and HVAC improvements across the district when the U.S. Department of Education reversed its decision to extend the spending timeline.
The initial deadline for expenditure of the funds was Sept. 30, with an additional 90 days to distribute all the funds, but the district was granted an extension for another 14 to 18 months to complete the project, Murray said last month at a school board meeting.
With the restoration of the funding, district leaders say the STEM academy project remains on track for completion.
'We can now focus fully on completing the construction of a new school that will prepare students for the future,' said Wayne Gehris, district chief financial officer. 'This resolution ensures that the investments we've made in our children will not be lost.'
Houlahan, who advocated for the district, issued the following statement:
'Congress lawfully appropriated the funds that Secretary of Education (Linda E.) McMahon tried to claw back from the Reading School District. I am heartened the courts have sided with school districts across the commonwealth to restore the funding.
'I am particularly pleased that the Reading School District recovered the funding needed to complete construction. The students and teachers deserve it and so does the city of Reading. STEM education is vital to our future and I'll continue to fight for resources our community and country needs.'
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But the government's being pretty aggressive here in pursuing payment activity in a way that may shift the hierarchy. Consumers might be more willing to go delinquent or default on something like a credit card or installment loan.' The Federal Reserve of New York study also found that borrowers ages 40 and older were most likely to be delinquent on their loans. Andrew McCall, 58, of Boise, Idaho, said he has about $30,000 remaining in outstanding loans from earning his computer science degrees. He said he can't afford his monthly payments, which are in the $250-300 range, and worries what a hit to his credit score might mean for all areas of his life. 'The fact that this economy is driven by debt to begin with causes my score to be paramount no matter what financial decisions I'm making, outside of going to the grocery store,' he said. 'My car, my house... Your credit rating becomes a social stratifier.' The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism.
