Federal court order restores $51M in funding for Reading School District

Preliminary injunction clears way for reimbursement, restoring future of RHS Innovation Academy.

The Reading School District has received $51 million in federal funds following a court-ordered reversal of a decision that had threatened the district’s new RHS Innovation Academy project.

The funds were part of the American Rescue Plan Elementary and Secondary School Emergency Relief (ESSER) program and had been revoked earlier this year by the U.S. Department of Education. A preliminary injunction issued by the court required the department to distribute the funding as originally approved.

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“This is a major victory for our students, our families, and our entire community,” said Dr. Jennifer Murray, RSD Superintendent. “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. Representative 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 Pennsylvania Governor Josh Shapiro and 15 other states, challenging the federal government’s sudden withholding of more than $185 million owed to Pennsylvania schools. The federal court ruling allowed the Pennsylvania Department of Education (PDE) to resume processing reimbursements. The Reading School District submitted for the full $51 million in allocated ESSER III funds, and the request was approved by the PDE.

Originally awarded more than $104 million in federal relief funds, the district had already 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.

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“Congress lawfully appropriated the funds that Secretary of Education 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,” said Representative Houlahan.

“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.”

The RHS Innovation Academy, currently under construction on North 9th Street, is designed to reduce overcrowding at Reading High School and provide expanded, innovative learning environments for students. District leaders say the 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, RSD Chief Financial Officer. “This resolution ensures that the investments we’ve made in our children will not be lost.”

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Berks Weekly
Berks Weekly
Berks Weekly is an independent and locally owned digital news outlet covering the City of Reading and Berks County. Download the mobile app: berksweekly.com/app
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