V.I. Education Officials Concerned as Critical Funding is Stalled Under Trump’s New Reimbursement Model

The U.S. Department of Education has introduced a major policy shift in how states and territories, including the U.S. Virgin Islands, manage the remaining $4.4 billion in federal COVID-19 relief funds.

The change, which aligns with President Donald Trump’s commitment to greater transparency and accountability, requires local governments to pay for approved expenses upfront before seeking reimbursement under the CARES Act, CRRSA Act, and ARP Act.

Previously, states and territories could access relief funds in advance for approved expenditures without immediate proof of use. The new rule now mandates that all payments be made first, with states and territories retaining detailed receipts and records before requesting federal reimbursement. The shift is designed to ensure strict oversight of pandemic-related expenditures, confirming that funds are used as intended.

The policy change affects funding under programs such as ESSER (Elementary and Secondary School Emergency Relief), ARPA, and HEERF (Higher Education Emergency Relief Fund). These funds were originally allocated to help reopen schools, support students impacted by the pandemic, and maintain educational services.