The Chicago Public School District and the Department of Education (ED) have negotiated a contract to reimburse over $1 million. This situation arose when the district inaccurately reported its Indigenous student population while applying for federal grants.
Documents acquired show that the ED inspector’s office found the district categorizing South Asian students from countries like Myanmar, Pakistan, and Nepal as Native Americans to secure additional federal funding.
It’s important to note that the repayment isn’t regarded as a penalty but rather an agreement between the district and the ED.
The federal funding came from the Indian Educational Grant, designed to support educational programs for students with Native American or Alaskan Native ancestry.
In the midst of a registration crisis, where around 150 school buildings sit half empty, the Chicago schools have been grappling with various challenges.
The American Indian Education Program, part of the Chicago Public Schools’ Department of Language and Culture Education, receives annual funding from the Indian Education Department. This funding is dependent on accurately reporting the number of enrolled students in the American Indian Education Program.
Historically, students must show Native American ancestry to qualify. A review initiated in 2021 by the ED Office of Inspector General found that over 1,000 students were classified as Native Americans. The investigation revealed that many surnames indicated South Asian ancestry.
By 2024, the OIG concluded that both program managers and school officials deliberately submitted incorrect data to the federal government for years.
Reporting discrepancies to the ED have led to about $140,000 in federal funding during the 2022-2023 and 2023-2024 school years alone. The investigation highlighted that the district had received hundreds of thousands of dollars in undue federal funds prior to 2022, accumulating to over $1.1 million in erroneous financial support across ten years.
The district is currently contending with issues like registration struggles, budget crises, and tense negotiations with the teachers’ union.
In contrast, officials from CPS claim they never misidentified students based on race or ethnicity, pushing back against the OIG’s assertions. They argue that South Asian students were not misclassified as American Indians and emphasize their commitment to working with the ED’s Indian Education Bureau to enhance data collection practices.
This includes instituting clear procedures for verifying tribal membership through recognized documents from students, parents, or grandparents at each school. A district representative stated that they are actively improving training and engagement with Native families.
Also, the CPS is carefully planning to adhere to the guidelines for the upcoming American Indian Education Grant for 2026.
In their statement, the district acknowledged the necessity of repaying funds to the federal government, citing difficulties in verifying the historical documents needed for their grant applications.
Responses from an ED spokesperson criticized the CPS, alleging ongoing submissions of false information regarding student demographics in multiple grant applications over the past few years.
