Completion of the new Reading High School Innovation Academy is in jeopardy, the Reading School District announced.

The U.S. Department of Education in March revoked more than $51 million in previously approved federal funds designated for the project, the district said in a news release, noting the significant funding gap could delay or jeopardize construction of the academy.

“It has been recommended that we stop progress on the Innovation Academy,” Dr. Jennifer Murray, district superintendent said Wednesday at the school board’s voting meeting.

The new facility, underway at Ninth and Douglass streets, is designed to reduce overcrowding at Reading High and expand science, technology, engineering and math, or STEM, academic opportunities for students.

“Our community has made tremendous progress, and this facility is critical to continuing that upward trajectory,” Murray said in a statement. “To lose these funds now would not only harm our students, but it would also reverse years of work to provide them with the opportunities they deserve.”

The district is working with its solicitor, the state Department of Education, state and federal legislators, representatives of Gov. Josh Shapiro’s office and others, Murray said.

“Anybody who will listen to us,” she noted. “We are waiting for guidance.”

Earlier this month, Gov. Shapiro joined a multistate lawsuit with 15 other states and the District of Columbia challenging the Trump Administration’s decision to abruptly revoke $185 million in funding owed to Pennsylvania, much of which the U.S. Department of Education had already approved for distribution.

These funds include $183.6 million owed to 116 Pennsylvania school districts, charter schools, intermediate units and career and technical centers, and $1.8 million owed to the Pennsylvania Department of Education, according to the state website .

Last week, local and state leaders, including U.S. Rep. Chrissy Houlahan and state Sen. Judy Schwank, toured the partly built academy to observe construction progress and meet with district leaders.

Houlahan praised the facility’s potential but expressed concern about the loss of federal support, the district said.

“Let me be clear: our government must stand by its word,” Houlahan said in a statement. “These federal funds, secured by the American Rescue Plan Act that I proudly voted for in 2021 and duly appropriated by Congress, must be distributed as promised. For President Trump and his administration to claw back Congressionally approved and appropriated funding is illegal.”

Houlahan said she fully supports Gov. Shapiro’s lawsuit to challenge this decision in court.

“If these funds are not delivered as promised, the people of Reading will suffer financial consequences and that’s not right,” Houlahan said.

The students of Reading want and deserve a high school to prepare them for the competitive jobs of the 21st century, she said.

“That’s exactly what they will gain with a STEM education,” Houlahan said. “There’s nothing efficient about a halfway built school. The Trump administration’s decision is absolutely punitive and foolish.”

The district was originally awarded more than $104 million in American Rescue Plan Elementary and Secondary School Emergency Relief, or ARP ESSER, funds. Of that, approximately $77 million has been spent or committed to the academy and other construction projects, including heating, ventilating and air conditioning improvements across the district.

The initial deadline for expenditure of the funds was September 30, 2024, with additional 90 days to distribute all the funds, but the district was granted an extension for another 14 to 18 months to complete the project, Murray said Wednesday at a meeting of the school board.

The extension was needed primarily due to the unexpected discovery of bedrock that required blasting at the academy site, she said, and post pandemic issues with obtaining adequate building supplies.

U.S. D.E.P. has now reversed its earlier decision on the extension, citing regulatory timelines and a shift in federal priorities post-pandemic.

As a result, Murray said, the district risks losing more than $51 million in total. This includes $23.8 million already spent but not yet reimbursed, and another $27.5 million in pending obligations.

“We followed every guideline and were granted an extension that aligned with our project timeline,” said Wayne Gehris, district chief financial officer. “Now we’ve told those funds are no longer available. This puts the future of the Innovation Academy in question and creates a financial challenge we haven’t seen in more than a decade.”

Despite the challenge, district leaders say they are committed to exploring every available option to close the funding gap.

The district said it is also evaluating potential legal options.

“Our students deserve access to state-of-the-art learning environments, just like students in other communities,” said Gehris. “We’re doing everything we can to ensure this building is completed.”

For updates on the RHS Innovation Academy project, visit https://www.readingsd.org/ .