Dive Brief:
- The U.S. Department of Education estimates that about $2.5 billion in federal American Rescue Plan funding remains to be spent by school districts in 41 states, the District of Columbia and Puerto Rico, according to updated agency figures.
- The spending extensions allow districts that made extension requests an extra 14 months — or until March 30, 2026 — to spend down the funds allocated by Congress in 2021 to help schools respond to impacts from the COVID-19 pandemic, including through academic interventions.
- No additional late liquidation requests for ARP money under the Elementary and Secondary School Emergency Relief fund are pending or under review, the Education Department said Thursday.
Dive Insight:
Jan. 28 was the regular spending deadline for ESSER-ARP funds, and nearly 100% of the total $121.9 billion allocated has been spent, according to the Education Department. Districts and states received nearly $190 billion for K-12 schools from three allocations approved by Congress for pandemic recovery efforts.
In addition to the $2.5 billion remaining from ESSER-ARP, 25 states got approval to extend spending for Emergency Assistance to Non-Public Schools under ARP. There is about $433 million left to be spent under that program.
State education agencies filed late liquidation requests to the Education Department on behalf of school districts and private schools.
In addition to ARP, the other two federal COVID relief allocations are the Coronavirus Aid, Relief, and Economic Security Act and the Coronavirus Response and Relief Supplemental Appropriations Act. CARES and CRRSA had earlier spending deadlines.
The Education Department said there's about $4.4 billion of $201.3 billion — or about 2% — remaining in unspent funds from the three COVID relief allocations under ESSER for public and private schools, states and supports for students experiencing homelessness.
States that have pandemic spending extensions will now be responsible for making payments for expenses before seeking reimbursement from the Education Department, the agency said in updated guidance issued Feb. 19.
The extra time to spend down pandemic relief money has been helpful to districts that faced supply chain challenges, construction delays, labor shortages and the need to continue academic interventions, according to district leaders and administrator leadership organizations.
The pandemic began nearly five years ago — in March 2020 — and led to widespread extended school closures in many areas. To continue instruction and learning during the highly contagious outbreak, many schools switched to virtual learning, causing a scramble in some localities to provide devices and internet to students and staff.
In May 2021, about half (52%) of public school students in the U.S. were enrolled in full-time, in-person learning, according to federal data. By that fall, 98% of schools were operating full-time and in-person.
Expenses to reopen schools included facility upgrades and personal protection equipment. Later appropriations focused on tutoring, engagement and summer programs for academic recovery. Districts were required to set aside at least 20% of their ARP funding for learning recovery initiatives.
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