District grants director warns of sunsetting federal funds, urges planning for gaps

Dr. Fred Engelhardt, the district’s director of grants and program development, told the Albany City School District Board of Education that the district’s grant portfolio has declined from a peak and that several grants are approaching sunset dates, creating potential gaps in services.

Engelhardt said the district awarded about $35 million at peak and currently manages about $29 million in grants, attributing the decline to multi-year competitive awards and liquidation of American Rescue Plan funds. He warned that some grants, including the Afghan refugee school impact support and elements of the S2S (refugee and immigrant Student Welcome Program), are set to sunset in June 2026 and that federal shifts in oversight and priorities could affect funding streams for full-service community schools and some DEI or social-emotional programs.

"Find the penny, pinch the penny," Engelhardt said, describing efforts to identify other funding sources such as county grants, philanthropic donors (TUI Foundation), community partners, and reimbursement opportunities like Connect Kids transportation support.

Board members asked how the district will maintain services for vulnerable populations, including refugee and immigrant students, if those grants lapse. Engelhardt said the district must be creative with Title I and other flexible funds, rely more on community partners (e.g., Boys & Girls Club, YMCA), consider consortium grant applications with neighboring districts, and pursue state or municipal partnerships to tap other funding sources.

Board member Ms. Savage recommended the district prepare an "all-sources" budget showing grant expirations and the programmatic impact of losing those funds; Engelhardt and others agreed to coordinate with budget staff to present that information.

Next steps: Grants and finance teams will work to produce a report on expiring grants and potential budget strategies for the board’s review in the new year.