ED Abruptly Cancels ESSER Funding Extensions -- THE Journal

Policy & Funding

ED Abruptly Cancels ESSER Funding Extensions

By Rhea Kelly
03/31/25

The Department of Education has moved to close the door on COVID relief funding for schools. In a March 28 letter to state chiefs of education, Secretary of Education Linda McMahon stated that "the period to liquidate obligations for these Grant Awards expired," and declared that "extending deadlines for COVID-related grants, which are in fact taxpayer funds, years after the COVID pandemic ended is not consistent with the Department's priorities and thus not a worthwhile exercise of its discretion."

This impacts nearly $3 billion in unspent ESSER funds, according to reporting by The 74. The original deadline to commit those funds to specific expenses was Sept. 30, 2024, but ED had previously granted states extensions through March 30, 2026. However, McMahon asserted, "Any reliance on a discretionary extension subject to reconsideration by the agency was unreasonable. Accordingly, on reconsideration, the Department amends the period of liquidation to end on March 28, 2025, at 5:00pm ET."

The reversal comes less than a month after ED announced a change to its ESSER reimbursement policies, requiring states to pay for ESSER-approved services up front and then submit the expenditures to ED for reimbursement. It's unknown how many states may be left holding the bag for unreimbursed expenses.

ESSER funds are used for a variety of purposes intended to address student needs in the aftermath of the pandemic, including academic support, mental health services, staff training, technology and infrastructure, and summer learning programs.

According to documentation uncovered by The 74, Texas and Pennsylvania are set to lose more than $200 million in unspent ESSER funds, while Ohio, New York, Tennessee, and others have $100 million in unspent funds.

McMahon said the Department will consider new ESSER extensions on "an individual project-specific basis," and states must submit a statement "explaining (1) how a particular project's extension is necessary to mitigate the effects of COVID on American students' education, and (2) why the Department should exercise its discretion to grant your request."

About the Author

Rhea Kelly is editor in chief for Campus Technology, THE Journal, and Spaces4Learning. She can be reached at [email protected].

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