West Virginia Avoids $465 Million Clawback in COVID-19 Funds from Federal Government

West Virginia Governor Jim Justice announced on Friday that the state will not face a clawback of $465 million in COVID-19 money from the federal government, easing concerns raised by state lawmakers during the legislative session in March.

The funds, which were part of over a billion dollars in federal aid received by the state to support students during the pandemic, were at risk due to regulations requiring the state to maintain or increase education funding levels. Failure to meet these requirements could have resulted in the federal government reclaiming the money.

However, West Virginia was granted a waiver for the funds, allowing the state to keep the money and continue investing in education. Governor Justice expressed confidence in the positive outcome, citing the state’s commitment to education through initiatives such as school building projects and teacher pay raises.

Despite a decrease in the percentage of the state budget allocated to education in recent years, Justice highlighted the overall increase in state spending on education, demonstrating a continued investment in the state’s schools. The state’s dedication to education was further emphasized by the approval of $150 million for the School Building Authority in the upcoming fiscal year.

The resolution of this issue provides stability for West Virginia’s education system and ensures that vital funding will remain in place to support students and educators as they navigate the challenges of the ongoing pandemic.