TOWNSHIP OF WASHINGTON, N.J. — Westwood Regional School District is now confronting the potential loss of more than half a million dollars in expected federal reimbursement for two key infrastructure projects—part of a broader funding crisis affecting 20 school districts across New Jersey—after the U.S. Department of Education abruptly reversed an earlier extension on the deadline to apply for American Rescue Plan (ARP) Education Stabilization Fund (ESSER) reimbursements.
In a detailed memo issued April 2 to families, faculty, and staff, Superintendent Dr. Patrick J. McQueeney said the district “may be unable to receive reimbursements for up to $510,000 in ARP ESSER funds intended for two major projects: the HS Campbell Auditorium HVAC Replacement and the George School Electrical Project for HVAC.”
Both projects, McQueeney noted, “encountered significant delays, primarily due to supply chain disruptions,” which extended completion beyond the initially planned timeline.
The memo follows a March 28 announcement from the U.S. Department of Education that it had rescinded a previously approved extended liquidation period, cutting off reimbursement eligibility that many districts—including Westwood Regional—had been relying on. (Our initial story is here.)
“The New Jersey Department of Education (NJDOE) has communicated that, as of 5:00 p.m. on Friday, March 28, 2025, the U.S. Department of Education has rescinded the previously approved extended liquidation period for the American Rescue Plan (ARP) Education Stabilization Fund (ESSER) programs,” McQueeney wrote. “This modification has effectively shortened the time allowed for the district to request reimbursement for certain completed facility-related projects.”
The change affects districts that had been operating under guidance that reimbursement requests could be submitted through March 2026. “Our district has been actively working with the NJDOE since June of 2024 to navigate the complexities of the reimbursement process,” McQueeney said. “Unfortunately, despite ongoing communication with the state, we encountered system-related difficulties when attempting to submit our reimbursement request. These issues, coupled with the recent modification to the liquidation period, have placed us in a challenging position.”
McQueeney said the district remains in contact with state officials “as they work to clarify the next steps and resolve this situation,” and is seeking further guidance “to determine whether there is any way to address this issue retroactively or to access the funds for these critical projects.”
“We understand the importance of these facility upgrades to the continued safety and functionality of our schools, and we are committed to ensuring that we do everything in our power to secure the necessary funding,” he wrote. “I want to assure you that we will continue to advocate on behalf of our district and will keep you updated as we receive more information from the NJDOE.”
The situation is part of a broader fallout from the federal government’s decision to terminate the extended reimbursement period for ESSER funds, a move that could cost New Jersey school districts more than $85 million. The affected districts, which include Paterson, Newark, North Bergen, Bergenfield, and Westwood Regional, had relied on the federal extension to complete upgrades addressing pandemic-era health and safety needs.
Governor Phil Murphy on Monday denounced the action. “These cuts are reckless and irresponsible, allowing us very little time for contingency plans,” he said in a statement. “New Jersey is proud of its best-in-the-nation public school system and we will do everything we can to restore this funding and maintain our reputation for excellence in public education.”
U.S. Secretary of Education Linda McMahon defended the move in a letter to state education leaders. “Extending deadlines for COVID-related grants, which are in fact taxpayer funds, years after the COVID pandemic ended is not consistent with the Department’s priorities and thus not a worthwhile exercise of its discretion,” she wrote.
Districts may still apply for case-by-case extensions but must demonstrate the funds are “essential to mitigating COVID’s effects on student learning,” the department said. Many school leaders argue that HVAC system upgrades—which were a top recommendation during the height of the pandemic—clearly qualify.
The Westwood Regional School District serves K–12 families in Westwood and the Township of Washington. Both towns passed pandemic-era referendum measures and local budgets to supplement the ESSER program’s goals, and the potential loss of federal reimbursement adds new financial uncertainty.
On March 31, McQueeney told Pascack Press that the district had just received notice of the change and was awaiting further details from the county superintendent. His April 2 memo marks the district’s first formal public statement on the matter.
This is a developing story. Pascack Press will provide updates as more information becomes available.