The Guam Department of Education faces a new federal change with looming consequences, after US education secretary Linda McMahon declared time's up for the local agency to spend its COVID-19 relief funds. This development now threatens its refurbishment project, as American Rescue Plan dollars are tied. 

GDOE has over $100 million in approved ARP funds for late liquidation, but McMahon now says the clock has run out. GDOE superintendent Dr. Kenneth Swanson, along with other state education chiefs, received an update from McMahon on COVID-19 funding, a letter detailing the reversal of previously granted extensions, which allowed states extra time to use the money for planned projects and services.

“Literally, in that letter, one of the lines I was kind of stunned by," he recalled, "we realized we approved the late liquidation - but we changed our mind. We want the money back.”

This sudden policy shift comes as GDOE faces a new federal requirement: using local funds upfront for federally-funded projects, with reimbursement later. This affects major initiatives like the multimillion dollar refurbishment of 12 public school campuses, funded by ARP monies.

Swanson said, “If we don’t get reinstated, we have to work out how to settle with our contractors for the work that can’t be done and pay for the things that have occurred. And that’s a legal complex.” He added, “There are things on ships that are headed this way that have already been ordered for those projects. So, it’s a complicated thing to settle out–and I hope we don’t have to go into a litigation environment against the USDOE–but that may be what happens.”

Swanson says so far, GDOE has submitted over $8 million in invoices and received reimbursement. But this new decision has brought the process to a screeching halt, as he noted, “Now we can’t even do that. We can’t be reimbursed at all. We stopped it.”

Despite the setback, Swanson says GDOE is appealing.  “Now we’re working through the appeal process that was outlined in that   letter to try and get the authority back so we can continue to draw that money, because the money still exists," he stated.

The superintendent adds he’s working with Guam congressman Jim Moylan, while Governor Lou Leon Guerrero has requested a videoconference with the education secretary.