The U.S. Department of Education this week designated Alaska as “a high-risk grantee” because it said the state failed to fairly distribute COVID-19 relief to school districts.

The measure, which contained the largest nominal school funding increase in state history, was billed as a compromise between progressive lawmakers—who sought a larger funding increase than what was eventually included—and more conservative legislators.

“The Anchorage School Board may be forced to eliminate approximately 650 educators, paraprofessionals, and key support staff in May 2024 unless Legislative action is taken,” the resolution says.