ESSER Funds

ESSER Funds – One-Time Funds With A Expiration Date
by Dr. David Holbrook, Executive Director | National Association of English Language Program Administrators (NAELPA)

In March of 2021, the U.S. Congress passed the American Rescue Plan (ARP) Act, providing $122 billion in Elementary and Secondary School Emergency Relief (ESSER) funding. This funding, coupled with the CARES Act (passed March 2020) and CRRSA Act (passed December 2020) ESSER funds, brings the total ESSER funding to about $190 billion. This funding was provided to help education agencies at the state and local level address the educational impact of the COVID-19 pandemic.

ESSER funds are one-time funds, which means that when these funds run out, they will not be replaced. CARES Act ESSER funds expired on September 30, 2022 and are no longer available. CRRSA Act ESSER Funds expire September 30, 2023 and ARP ESSER funds expire on September 30, 2024. This means they must be obligated to be spent no later than September 30, 2023, and 2024 respectively, and must be spent by January 28, 2024, and 2025 respectively. CRRSA Act ESSER funds that have not been spent by January 28, 2024 must be returned to the U.S. Department of Education (USED). The same is true of ARP ESSER funds, but the date to spend by is January 28, 2025.

ESSER funds must be used to address impacts related to the Coronavirus pandemic. ESSER fund expenditures must be an allowable use funds as outlined in the laws that provided this funding. Expenditures must also be designed to prevent, prepare, and respond to the pandemic. The U.S. Department of Education guidance also indicates that ESSER fund expenditures can be used for needs arising from or exacerbated by the pandemic, or to emerge stronger post-pandemic (by addressing pre-existing challenges that, if left unaddressed, will impede recovery from the pandemic).

Because ESSER funds are one-time funds, they are typically not spent on purchases that may have recurring costs unless the State Education Agency (SEA) or Local Education Agency (LEA) knows that they will have the budget to cover those recurring costs once the one-time funding runs out. Since, in most cases, SEAs and LEAs can’t anticipate significant increases in funding that could cover recurring costs of purchases made with one-time funds, they are often hesitant to make these types of purchases.

There is some good news for LEAs that want to make purchases with recurring costs that qualify for Title I funding. The U.S. Congress has passed, and the President has signed into law, the FY2022 Appropriations Bill, which included a $1 billion increase in Title I funding for LEAs over the previous year. LEAs will saw this increase in their Title I funding starting in the 2022-2023 school year. This increase in Title I funds could provide the additional funding LEAs may need to cover the recurring costs of Title I qualified purchases made with ESSER funds by budgeting for the recurring costs using the increase in Title I funds.

But How Can My District Use These Funds?

Districts have a lot of flexibility on how they can use CRRSAA funds. The fact is, districts can use ESSER funds for any ESEA (ESSA) allowable activity. One of the allowable uses of ESSER funds in all three COVID-19 relief laws is “Any activity authorized by the ESEA.” This means that districts can use these funds to purchase anything that is allowable under ESEA and that addresses the impact of the pandemic.

Recently, on the Cultural Connections Lab podcast hosted by Dr. Kelly B. Forbes, Louise El Yaafouri and Dr. Forbes unpack the power of federal funding and the impact it has on students and communities. If you missed it, check it out below!