# Alaska Designated as “High-Risk Grantee” for COVID Relief Funding Distribution
## Failure to Fairly Distribute Relief Funds
The U.S. Department of Education has designated Alaska as a “high-risk grantee” due to the state’s alleged failure to distribute COVID-19 relief funds to school districts in a fair manner. The state received over $125 billion in funding from the 2021 American Rescue Plan Act to cover pandemic-related costs, with a requirement to allocate $30 million to the highest-need schools in four districts.
## Dispute Over Federal Requirements
The Alaska Department of Education disputes the claim of unfair distribution, stating that it has already complied with federal requirements and does not believe additional funding needs to be allocated to districts. Education Commissioner Deena Bishop expressed surprise at the designation, emphasizing that the state funded schools as usual.
## Potential Consequences and Resolution Efforts
If Alaska remains out of compliance with federal law, there is a risk of federal funding being recovered and withheld. The state plans to request reconsideration of the high-risk designation within a 10-day window. Legislators are seeking answers and solutions to resolve the funding issue to prevent potential staff cuts and increased class sizes in districts like Kenai.
## Impact on School Districts
The unresolved funding issue is related to a “maintenance of equity” provision in the relief act, which aimed to prevent reductions in funding for low-income students at high-need schools during the pandemic. The situation has created uncertainty for districts like Juneau, which are facing budget crises and relying on accurate funding allocations.
## Calls for Resolution and Communication
Officials and lawmakers are urging swift action and clear communication to address the funding discrepancies and prevent further financial strain on schools. The Senate Education Committee has scheduled a hearing to discuss the maintenance of equity requirements and the high-risk designation, highlighting the need for transparency and resolution in the distribution of COVID relief funds.