School districts may have until April 2026 to spend federal school rescue dollars, the U.S. Department of Education recently announced.

To qualify for this extension, school districts must have a signed contract for the expenditure and an extension request approved by the Michigan Department of Education prior to Sept. 30, 2024.

This extension will provide school districts with flexibility when using federal rescue funds to address staffing shortages, by allowing districts and local unions to negotiate fair compensation packages to attract and retain talented educators in a highly competitive labor market.

Many school districts are also using federal funds to add staff to support student mental health and tutoring programs. The extension will allow districts to continue those efforts.

The state Department of Education expects additional federal guidance in the coming months and has committed to sharing it as soon as possible.