Section 31aa Funding Update
The ever-changing world of the newly adopted Section 31aa of the Michigan State School Aid Act (“SSAA”) has changed again and Miller Johnson wants to ensure all of our clients are aware of the statutory provision’s latest status. As you are likely aware, Section 31aa of the SSAA for 2025-26 provided for safety and mental health funding. That funding came with a caveat. Specifically, under the statute Michigan public school districts and intermediate school districts “must agree to be subject to a comprehensive investigation, must affirmatively agree to waive any privilege that may otherwise protect information from disclosure in the event of a mass casualty event, and must agree to comply with a comprehensive investigation.” MCL 388.1631aa(9). This subsection has caused great consternation for many districts.
A group of intermediate school districts, public school districts, and school district administrators filed lawsuits in both state and federal courts challenging this statutory provision. On Friday, November 21, 2025, the Michigan Court of Claims issued an order significantly impacting the opt-in process. In particular, the Court’s Order makes several items clear: 1) School Districts must opt-in for the funding no later than 11:59 p.m. on December 4, 2025; 2) School Districts may choose to rescind their opt-in thereafter so long as the rescission occurs by no later than 11:59 p.m. on December 30, 2025; 3) should a school district receive Section 31aa funds but then rescind its opt-in in a timely manner, in the form established by the Michigan Department of Education, the funds will be recaptured by deducting the amount from future state aid payments.
This order is premised, in part, on the fact that the Court will be hearing arguments on the merits of the case on December 11, 2025, and should issue a decision in time for school districts to make a decision on whether or not to rescind its declaration to accept funding. It should be noted that school districts will not be allowed to opt-in after the December 4, 2025, deadline based on the Court’s holding. As a result, school district’s must timely opt-in in order to have an opportunity to receive Section 31aa funds no matter what the Court may hold.
If you have questions about this funding or are seeking specific advice relative to what your school district should do relative to this issue, please be sure to contact one of the Miller Johnson Education Practice Group attorneys.