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GDOE pays Core Tech $17.559M, other vendors $1M using ARP funds

By Pacific Daily News

Copyright guampdn

GDOE pays Core Tech $17.559M, other vendors $1M using ARP funds

The Guam Department of Education on Wednesday said it paid an additional $17.559 million to Core Tech for school repairs, and about $1 million to other vendors.

GDOE said last week’s disbursement of more than $18.57 million in American Rescue Plan funds resolved outstanding Core Tech bills that had accumulated during the period when ARP funding was placed on hold.

Core Tech in 2024 bagged a $125 million-plus contract to refurbish 12 GDOE schools. But policy shifts under the new White House administration halted GDOE’s access to the ARP funds to pay its vendors including Core Tech.

In July, GDOE regained access to $108 million in ARP funds, but it comes with a caveat that GDOE has to front the costs and then apply for reimbursement.

GDOE had already paid down about $40 million before the federal reimbursement policy changed, the department earlier said.

In a release on Wednesday, GDOE said the additional vendors receiving payments include S.T. Corp., Johndel International, M80 Office Systems, Rainbow Paint Supply, Allstart Inc. dba QUA, Medpharm, De Vera Lopez, Meilbert, Hive Guam, Follett Content Solutions, Guam Power Authority, and Savvas Learning Company.

“These payments represent more than just clearing our books—they represent an investment back into our community,” Education Superintendent Erik Swanson said in a statement. “The funds ultimately flow into Guam’s economy.”

Under the Biden administration, states and territories were given an extension of up to March 2026 to spend ARP funds for education spending.

Trump’s Education Secretary Linda McMahon accelerated the deadline to March 28, 2025, leaving GDOE scrambling to find ways to access $108 million.

McMahon rescinded the decision after several states sued the USDOE, leading to court injunctions that blocked the federal agency from enforcing its policy.

Guam did not sue the federal agency, but GDOE filed a request for reconsideration and appeal with the USDOE.

McMahon restored the original extension deadline for GDOE to spend the ARP funds, but the federal government will now only reimburse rather than pay the costs up front.