After months of waiting for good news on millions in American Rescue Plan funds, Guam Department of Education has its answer from the federal government: Request Denied.

Last Friday, the U.S. Department of Education rejected GDOE’s bid to extend the liquidation deadline for COVID-19 projects following its abrupt reversal of an earlier approval to use the funds through March 2026.

Now the clock is ticking for GDOE to appeal. 

But Committee Oversight Chair on Education, Senator Vince Borja, is urging leadership to plan ahead as if the money is gone for good.

“They’re going to use as much local funds to at least keep priority projects ongoing, which are FBLG and GW, and then prioritize the remaining 12 schools that are under refurbishment,” said Sen. Borja. 

While Borja acknowledges the situation is an emergency, he says GDOE must first spend money it has before a formal declaration can be made.

“Is there an emergency? Yes. but, because they still have money remaining in their current fiscal year appropriations, the guidance is that they spend the money they have before they go and take money from somewhere else,” added Borja. 

Meanwhile, the education chair says when that time comes, financing options could be explored, though avenues like tax credits and borrowing would require appropriate  legislation. 

As GDOE pursues its appeal, legal action is also being considered, a move Borja backs.

 “I hope we don’t have to go into a litigation environment against the U.S. Department of Education—but that may be what happens,” said Dr. Kenneth Swanson, GDOE Superintendent.

And a courtroom fight may be worth it, just last week, a federal judge ordered USDOE to restore over $1 billion to states. 

That ruling came after New York Attorney General Letitia James, joined by 15 others and Pennsylvania’s Governor, sued the Trump Administration over a similar cut to ARP funds.

In the meantime, Borja says GDOE needs to start renegotiating with contractors to secure a payment plan for remaining school refurbishment projects.