Brick Schools May Lose $97K In Federal COVID Relief Clawbacks

BRICK, NJ — Issues obtaining a transformer for the Veterans Memorial Middle School HVAC project may end up costing the Brick Township School District more than $97,000, following the Trump administration's announcement that it will not allow any extensions on spending COVID relief grants, according to district officials.

The district was one of 20 in New Jersey named by Gov. Phil Murphy as being set to lose the relief funding that was designated for infrastructure projects, in what he called "reckless and irresponsible" cuts amounting to $85 million announced March 28 by the U.S. Department of Education.

The affected districts, including Brick Township, had been awarded extensions last fall to spend the federal money on infrastructure projects that had been delayed due to supply chain issues, contractor issues or other similar problems in limited situations.

Secretary of Education Linda McMahon abruptly informed districts that she had altered a deadline to request reimbursements for projects that had already been approved. The new deadline was moved up a year to March 28 at 5 p.m., which was the same day she sent the letter.

The Brick Township School District has spent nearly all of the grant funds it received from the Elementary and Secondary School Emergency Relief Fund under the Coronavirus Aid Relief and Economic Security (CARES) Act, business administrator James Edwards said. The ESSER grant reimburses the district as it spends the funds, so the Brick Schools may be on the hook for the final $97,481.

The district awarded contracts totalling $19,364,000 for HVAC projects at six schools in July 2022. Three of the projects, including one at Veterans Memorial Middle School, were funded by $10.7 million in COVID relief funds. The Vets Middle school project accounted for $4,899,000 of the grant funds, Edwards said.

While the contractor, GBI Inc trading as Thermal Piping, was able to complete the other projects within the grant window, the Veterans Memorial Middle School project faced multiple delays because the contractor had to wait for Jersey Central Power & Light to install a transformer to handle the increased electricity demands.

JCP&L was hampered in obtaining a transformer for the project, because of extensive storm damage elsewhere in the United States that made transformers a critical need to restore power in those areas, officials have told Patch.

Because the Veterans Memorial Middle School project wasn't an emergency, the request for a transformer was delayed multiple times. That pushed GBI's work back, Edwards said.

The deadline to use the COVID funds was Sept. 30, 2024, and Brick had paid GBI all but $97,481 by then, he said. The district had sought an extension because the issues in obtaining the transformer were out of its control, and that extension request was approved, the state Department of Education said.

"The New Jersey Department of Education worked with school districts to secure the U.S. Department of Education’s approval of one-time extensions for the ARP ESSER funding, only in limited situations," a state Education Department spokesperson said.

The state had notified school districts in a May 2024 memo that they could seek the extension on the reimbursement timeline for capital projects (e.g. HVAC upgrades, electrical work, window repair/replacement, etc.) that had been impacted by supply chain delays, contractor capacity issues, and other circumstances beyond the district’s control, the spokesperson said.

"After several reviews, New Jersey was notified of its approval to move forward with this late liquidation process on January 14, 2025, with the new deadline of March 28, 2026 to expend funds," the spokesperson said.

Superintendent Thomas Farrell noted the district had focused on using the funds for one-time capital projects rather than to fund operations, which was the initial goal of the federal funding.

"Now we are penalized for the contractor not being able to finish in time due to JCP&L not being able to secure a transformer last summer," Edwards said.

“These cuts are reckless and irresponsible, allowing us very little time for contingency plans," Murphy said Monday. "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. At a time of unprecedented chaos and uncertainty at the federal level, Washington is failing the next generation."