West Virginia Avoids Clawback of $465 Million in COVID-19 Funds, Governor Announces

West Virginia Governor Jim Justice announced on Friday that the state will not have to return $465 million in COVID-19 relief funds to the U.S. Department of Education. This news comes as a relief to state lawmakers who were concerned about the potential clawback during the final days of the legislative session in March.

The federal government approved West Virginia’s application for a waiver for the funds, which were part of the more than a billion dollars in federal aid the state received to support students during the pandemic. In order to receive the money, the state had to maintain or increase funding for education compared to pre-pandemic levels.

The state’s budget process was thrown into disarray when it was unclear if West Virginia would receive a waiver for 2023. This uncertainty led lawmakers to consider passing a “skinny budget” and reconvening in May to address any unfinished business once the financial situation was clearer.

Governor Justice expressed confidence that a positive resolution would be reached, citing the state’s dedication to funding school services and teacher pay raises since 2018. He also highlighted the state’s investment in building projects and teaching aides to improve math and reading skills in classrooms.

Despite an overall increase in state spending from 2017 to 2023, the percentage of the budget allocated to education decreased, which raised concerns with the federal government. However, Justice emphasized that the state’s commitment to education is evident, with $150 million approved for the School Building Authority in the upcoming fiscal year.

Overall, the decision to waive the clawback of funds is a positive outcome for West Virginia, ensuring that much-needed resources will continue to support students and educators in the state.