COVID Relief Spending Extensions Give States Extra Time to Liquidate Funds
The COVID-19 pandemic has had a significant impact on education systems worldwide, with schools facing unprecedented challenges in keeping students safe and providing quality learning experiences. To address these challenges, governments have allocated billions of dollars in federal funding for K-12 schools. However, as the pandemic continues to evolve, states and districts are facing new deadlines for using up these funds.
The Extension Requests
The U.S. Department of Education has been reviewing requests from states to extend spending deadlines for COVID-19 federal emergency funds for K-12 schools. So far, no requests have been denied. Approximately half the states requested spending extensions from one or more of the federal COVID emergency allocations offered for K-12.
The Spending Extensions
The spending extensions approved up until this point represent just a fraction — $1.7 billion — of the nearly $200 billion provided from Congress to states and local school districts to help with pandemic recovery efforts. These extensions give states an extra 14 months beyond their original spending deadline to liquidate their allocations.
The Education Stabilization Fund
The Education Department has allowed states to request spending extensions for each of the allocations under the Education Stabilization Fund. This fund was established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the Consolidated Appropriations Act, 2021, and the American Rescue Plan Act (ARP). The funds are allocated to states through three main programs:
- ESSER: Emergency School Slush Fund Grants to States to Support Education Services
- GEER: Governor's Emergency Education Relief Funds
- EANS: Emergency Assistance for Nonpublic Schools
The Status of Spending Extension Requests
As of Aug. 15, the following states have received spending extension approvals:
CARES Act
- ESSER allocations to districts: The Department approved 12 extension requests from states for a total of $15.7 million. An additional extension request from the U.S. Virgin Islands was approved for $521,939.
- State GEER funds: Nine states were approved to extend $11.2 million in funding. The U.S. Virgin Islands was permitted to also extend $2.7 million.
CRRSA Act
- ESSER allocations to districts: The Department approved 25 states' requests to extend a total of $365.7 million in ESSER allocations to districts. Guam, U.S. Virgin Islands, and Central Northern Mariana Islands were allowed to extend $17.8 million.
- State GEER funds: 13 received approval to extend a total of $25.5 million. American Samoa, Central Northern Mariana Islands, and Virgin Islands are extending $11.1 million.
ARP Act
- ESSER funds: Delaware and Puerto Rico received spending extensions for $907.8 million in ESSER funds. Nebraska currently has a request under review.
- ARP EANS funds: California and Colorado are allowed to extend ARP EANS funds totaling $110.1 million. Missouri and Texas have pending requests for spending extensions for ARP EANS.
The Consequences of Underspending
If states and districts fail to spend the allocated funds by their respective deadlines, any unspent money will be returned to the Department of Education. This could lead to underspending, which might result in reduced funding opportunities for schools in future years.
The Takeaway
The COVID-19 pandemic has presented unprecedented challenges to education systems worldwide. While the spending extensions give states more time to liquidate funds, it's essential for them to use these resources efficiently and effectively to support students and schools. With careful planning and coordination, educators can leverage these funds to address ongoing educational needs.