Treasury May Take Back Millions From Arizona Education Fund Over Condition Barring Mask Mandates

The Biden administration warned Arizona on Friday that if it continues to withhold federal funding from schools that have mask regulations, the department might reclaim $160 million in coronavirus relief funds that the state has set up for schools.

The Treasury Department issued the warning in the midst of a battle between Arizona Gov. Doug Ducey's administration and the White House over Arizona's prohibition on school mask mandates. This includes a Department of Education investigation into Arizona and other states that had prohibited masking in schools last year.

The restrictions cited above hinder attempts to curb the spread of COVID-19 by deterring families and school districts from adopting this instruction, according to a letter from the Treasury Department. "As a result, these educational programs, in their existing form, are ineligible for SLFRF monies."