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Home Source documents Exhibit 2025.05.02 letter from ED to AZ, State of New York et al. v. U.S. Department of Education, No. 1:25-cv-02990 (S.D.N.Y.), Doc. 78-1 (May 6, 2025)

Exhibit 2025.05.02 letter from ED to AZ, State of New York et al. v. U.S. Department of Education, No. 1:25-cv-02990 (S.D.N.Y.), Doc. 78-1 (May 6, 2025)

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          Case 1:25-cv-02990-ER                   Document 78-1             Filed 05/06/25           Page 1 of 4


                                UNITED STATES DEPARTMENT OF EDUCATION
                                     OFFICE OF ELEMENTARY AND SECONDARY EDUCATION



                                                    May 2, 2025

The Honorable Tom Horne
State Superintendent of Public Instruction
Arizona Department of Education
1535 West Jefferson St.
Phoenix, AZ 85007

Dear Superintendent Horne:

I am writing in response to your agency’s request to extend the period of time to liquidate obligations
for specific projects funded under the American Rescue Plan Act (ARP) past the March 28, 2025 date
referenced in Secretary McMahon’s letter of that date. You requested a liquidation extension for
funds under your ARP ESSER grant S425U210038.

After carefully considering the information you provided, I have determined that you sufficiently
described how the following projects directly mitigate the effects of COVID on American students’
education and justified why the Department should exercise its discretion and grant your request.
Therefore, the following projects are approved:

 Project Name                             Amount of             Liquidation         Reason for approval
                                          funds                 Extension
                                          requested to          Date
                                          be liquidated
                                                                                    This program provides academic
 Cedar Unified District                                                             tutoring directly to students to
                                          $445,208.51           3/28/2026
 Tutoring (Project 5)                                                               address COVID-related learning
                                                                                    loss.
                                                                                    This program provides targeted
                                                                                    academic interventions to
                                                                                    students to address COVID-
                                                                                    related learning loss through the
                                                                                    district's afterschool program.
 Creighton Elementary District
                                                                                    The grantee is expected to clearly
 YMCA After School Program                $428,600.00           6/30/2025
                                                                                    document in their payment
 (Project 7)
                                                                                    request that these funds were
                                                                                    used exclusively on providing
                                                                                    academic support and not other
                                                                                    forms of support or activities
                                                                                    common in an afterschool setting.


                                   400 MARYLAND AVE. SW, WASHINGTON, DC 20202
                                                  www.ed.gov

 The Department of Education’s mission is to promote student achievement and preparation for global competitiveness by fostering
                                       educational excellence and ensuring equal access.
         Case 1:25-cv-02990-ER          Document 78-1        Filed 05/06/25      Page 2 of 4

Page 2 – Superintendent Horne


 Project Name                     Amount of        Liquidation      Reason for approval
                                  funds            Extension
                                  requested to     Date
                                  be liquidated
                                                                    This program provides academic
 Pendergast Elementary
                                                                    tutoring directly to students to
 District Spring Tutoring         $44,000.00       5/31/2025
                                                                    address COVID-related learning
 Program (Project 8)
                                                                    loss.
                                                                    This program provides academic
                                                                    tutoring directly to students to
                                                                    address COVID-related learning
                                                                    loss through the district's summer
                                                                    school program. The grantee is
 Pendergast Elementary
                                                                    expected to clearly document in
 District Summer School           $172,800.00      8/31/2025
                                                                    their payment request that these
 Program (Project 9)
                                                                    funds were used exclusively on
                                                                    providing academic support and
                                                                    not other forms of support or
                                                                    activities common in a summer
                                                                    school setting.

I am approving continued access to this grant for each project through the date(s) above. This
approval is given with the requirements that the grant funds be used only to liquidate obligations
incurred on or prior to September 30, 2024, and support costs for the direct academic services to
students described in your approved project(s). Costs that fall outside of the direct academic services
to students described in your approved project(s) will not be reimbursed.

Upon review of your submitted information, I am declining to approve for the projects listed below a
liquidation period past the March 28, 2025 date referenced in the Secretary’s letter. I have determined
the Arizona Department of Education was unable to sufficiently explain how each project directly
mitigates the effects of COVID on American students’ education. I found the projects to be
inconsistent with the Department’s priorities and thus not a worthwhile exercise of its discretion.

 Project Name                     Amount of        Requested        Reason for denial
                                  funds            Liquidation
                                  requested to     Extension
                                  be liquidated    Date
                                                                    This project is providing
 Pima County Capacity Project                                       resources to teachers rather than
                              $1,187,459.60 5/15/2025
 (Project 1)                                                        directly supporting students
                                                                    academically.
                                                                    While this project provides
                                                                    services to students related to
 HealthCorps (Project 3)          $4,889,103.00 3/28/2026           mitigating the effects of the
                                                                    pandemic, it is focused on health
                                                                    rather than academics.
         Case 1:25-cv-02990-ER           Document 78-1        Filed 05/06/25      Page 3 of 4

Page 3 – Superintendent Horne


 Project Name                      Amount of        Requested       Reason for denial
                                   funds            Liquidation
                                   requested to     Extension
                                   be liquidated    Date
                                                                    While this project provides
 University of Arizona CRR                                          support for mathematics teachers,
                                   $449,028.68      3/28/2026
 (Project 4)                                                        it does not provide services
                                                                    directly to students.
                                                                    This project is providing
 Parker Unified School District
                                                                    resources to teachers rather than
 Academic Coaching (Project     $110,555.18         5/31/2025
                                                                    directly supporting students
 6)
                                                                    academically.

Opportunity to Appeal: The agency may request an appeal of these decisions consistent with 2 C.F.R.
§ 200.342. As to each decision for which an appeal is sought, please provide additional information
to support the contention that the project provides necessary services that directly mitigate the effects
of the COVID pandemic on students’ education. Your appeal must be submitted no later than 30
calendar days from the date of this letter. Please submit your request to ESFAppeal@ed.gov.

Drawdown Procedures: On March 17, 2025, you received notification from Deputy Assistant
Secretary Mark Washington that, per your U.S. Treasury-State agreement, your Education
Stabilization Fund and American Rescue Plan Act payments spent on allowable expenditures may be
drawn down through the route payment approval process. This process follows the regular process for
when a grant account has been placed on a route payment flag in G5. Please submit your payment in
G5 and forward the control number with an assurance and brief description indicating the funds
requested are aligned to the direct academic services to students described in your approved
project(s), including the project name(s) and specific amount(s) requested to the appropriate mailbox.
It is helpful to include your State name and grant award number in the subject line of the email to
assist us with processing. The Department staff will review and, if approved, we will release the
payment in G5 to your grant account.

The project-specific liquidation extension requests you submitted that are not included in this letter
are still under Department review. You will receive additional communication regarding these
requests at a later date.

If you have any questions about this letter, please contact the Department at ESSERF@ed.gov. Thank
you for your efforts to ensure that all Federal funds that you administer are used properly to help
America’s students.
        Case 1:25-cv-02990-ER       Document 78-1      Filed 05/06/25    Page 4 of 4

Page 4 – Superintendent Horne


                                        Sincerely,




                                        Hayley B. Sanon
                                        Principal Deputy Assistant Secretary
                                        and Acting Assistant Secretary
                                        Office of Elementary and Secondary Education

c:    Michelle Udall, Associate Commissioner, Arizona Department of Education


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