The Loop Lab School that got a $1 million grant from the state will pay the money back.
Former Gov. Rod Blagojevich's administration admitted giving the private school the money was a mistake.
Blagojevich had meant to give the $1 million to help rebuild the Pilgrim Baptist Church after it was gutted by fire in 2006. But the money mistakenly went to the school, which rented space from the church.
The school used the money to buy a downtown condo.
Chandra Gill, the head of the school who accepted the funds, said the money was meant to help the school's students.
"I'm an educator and my intent was always to educate children."