Paterson Public Schools left nearly $4.37 million of its federal education funding unspent this past school year, and the district is now asking to roll that money into the 2026-27 school year rather than return it. The district was authorized to receive $32 million through the federal Elementary and Secondary Education Act but spent only about $27.6 million of it, leaving close to 14% of the total sitting unused.
The Paterson Board of Education approved the district's final federal spending report for the 2025-26 school year and authorized an application to carry the remaining $4,369,825 into the coming school year, according to TAPinto Paterson. The district anticipates spending the full amount through that carryover application, per the same report. The money breaks down into several funding streams: about $2.37 million from Title I, $1.96 million from Title I school improvement funding, $36,228 in Title III funding, and $6,529 in Title III immigrant education funding.
What the Money Is Supposed to Do
Title I is designed to steer additional resources to schools serving students from low-income families, with funding intended to improve academic achievement and provide extra support to students who need it. The Title I school improvement portion focuses specifically on helping schools address academic performance challenges and improve outcomes. Title III funding supports English-language instruction for students learning English, while the Title III immigrant education dollars provide additional support for eligible immigrant students.
Paterson's own Office of Federal Programs describes its role as promoting academic excellence and enhancing educational opportunities and equity districtwide, overseeing formula grants under the Elementary and Secondary Education Act that include Title I, Title II, Title III and Title IV. The district receives these federal funds every year to support its Title I programs, and the law itself is meant to improve academic performance, support students facing educational challenges, and help schools close achievement gaps.
A Board Member Pushes Back
The resolution approved by the board does not specify which schools or programs will receive the leftover funding, why it went unspent in the first place, or when it will actually be used. That gap didn't sit well with Board Commissioner Corey Teague, who called for greater transparency on how much money is available under each grant and what the district plans to do with it.
Teague requested a detailed plan identifying each program, its intended beneficiaries, a spending timeline, the department responsible, and measurable outcomes, according to TAPinto Paterson's reporting. He also called for regular updates to the board and the community comparing planned spending and student participation against what actually happens.
Did Students Miss Out?
Teague expressed concern that students may not have received the full benefit of programs that were planned or funded, a worry he said becomes especially significant when participation falls substantially below projections. At the same time, the commissioner was careful to note that unspent funding alone does not prove a student missed a service, even as he argued it still warrants close scrutiny.
TAPinto Paterson contacted the district for clarification about the unspent funding, which programs would benefit, and when the money would actually be used. The district had not responded to those questions as of publication, the outlet reported.
How Carryover Funding Works Under State Rules
New Jersey's grant guidance offers some insight into how districts are supposed to handle money like this. Under state entitlement grant rules, if a district's subsequent-year grant application has not yet received final approval from the New Jersey Department of Education, the grantee must budget the carryover funds as part of its original application, and those funds get reviewed as part of that same approval process. It's a procedural detail, but it underscores that Paterson's carryover request will still need to move through state review before the $4.37 million can actually reach classrooms.
