DEED officials reported to the House Finance Education Subcommittee that Alaska received $579.8 million in COVID‑19 relief education funds of which $578.3 million was expended, leaving $1.5 million forfeited.

Deputy Commissioner Karen Morrison said factors beyond DEED’s control — including timing and statutory set‑asides — contributed to the forfeiture and that some forfeitures occurred directly at the district level. The department agreed to provide follow‑up details explaining the specific reasons that led to the forfeitures and which set‑asides or timelines applied.

DEED also said it currently has 43 positions funded by federal grants in the fiscal year, representing approximately 14.2% of department employees; the department said it is monitoring potential federal policy changes that could affect grant funding and would notify the committee if federal actions required contingency planning.

Committee members asked for district‑level reporting on how ESSER and other relief funds were spent; DEED said districts submitted grant applications and quarterly reimbursement requests and that DEED compared reimbursements to approved budgets as part of its oversight. DEED agreed to provide more historical staffing information and district reporting details in follow up to the committee.

Why this matters: Committee members flagged the $1.5 million forfeiture and asked for documentation so legislators can determine whether procedural changes or additional outreach could have prevented the loss of federal resources. Federal grant funding also supports a significant share of DEED positions, so changes to federal policy could affect staffing and program delivery.