Statement from the City of Chicago and Chicago Public Schools on CARES Act Lawsuit

FOR IMMEDIATE RELEASE:
Monday, July 20, 2020

Statement:

Chicago Public Schools has joined a multi-state lawsuit to prevent millions of dollars in CARES Act Funding from being misallocated from public school students who are most in need of support. The devastation of the COVID-19 pandemic has disproportionately impacted low-income students of color and the Trump Administration is turning its back on these students in favor of wealthy private institutions by siphoning public funds away from the students who Congress intended to support.”

Background:

• Friday, Chicago Public Schools joined several states and cities in a filing suit against the U.S. Department of Education and Education Secretary Betsy DeVos for implementing measures that would unlawfully divert public funds intended for Title I public schools to private institutions through CARES Act funding.
• Through the CARES Act, Local Education Agencies (LEAs) such as Chicago Public Schools, must distribute a certain amount of funds to private institutions.
• The multi-state suit argues that the methodology for distributing funds to private schools through LEAs disproportionately benefits private schools while diverting much-needed funds away from low income public school students.
  • The Board estimates it will lose approximately $10 million dollars in CARES Act funding through this unlawful funding methodology.
• Funds for the CARES Act have not yet been distributed to Chicago and the lawsuit aims to change the distribution methodology.