Chris Demers wrote:
I have had pine mulch under my children's playground for 2 years.
This year a strange fungus is coming up everywhere in the mulch. It
looks attractive and yellow for a day then like a strange outer space
alien plant after that. If I touch it, it releases many black spores
at this point. Please have a look at the attached pictures and tell
me if you know how to safely get rid of it and if I should be
concerned about it for any reason.

This is a standard problem and questions about it appear every year.
You can google for it.