Federal ESSER Funding Creates Opportunities and Challenges for School Districts

Since March 2020, Congress has passed three stimulus bills that provided nearly $190.5 billion to the Elementary and Secondary School Emergency Relief (ESSER) Fund. This influx of funding has created significant challenges for Local Education Agencies (LEAs) and school districts. School administrators are doing their best to put the ESSER funding to good use, but it has been difficult at times. Many LEAs across the nation were already facing pressure to stay up to date with the latest technology and infrastructure needs, increase educator pay, increase hiring, and more. Many will be tempted to use these funds to respond to those challenges and address current funding shortages.

School personnel have struggled to keep up with ESSER funding guidance. School business officials have expressed concern about the impact of this new funding on areas like current daily operations, budgets and audits.

As they plan to incorporate this new funding into their district’s operations, it’s helpful for school administrators and business officials to understand the source of the funding and its intended uses.

Background

States receive funds based on the same proportion that each state receives under the Elementary and Secondary Education Act (ESEA) Title-IA. States must distribute at least 90% of funds to LEAs based on their proportional share of ESEA Title I-A funds. States have the option to reserve 10% of the allocation for emergency needs as determined by the state to address issues responding to the COVID-19 pandemic.

COVID-19 Pandemic Timeline and ESSER Funding

January – March 2020 

COVID-19 Public Health Emergencies Declared

March 2020 

Preparedness and Response Appropriation Act, 2020 signed into law

Families First Coronavirus Response Act, 2020 signed into law

CARES Act signed into law 

August 2020 

OMB issues 2020 Compliance Supplement

December 2020 

OMB issues addendum to 2020 Compliance Supplement

CRRSA signed into law 

March 2021 

ARPA signed into law

• The Coronavirus Aid, Relief and Economic Security (CARES) Act, was signed into law on March 27, 2020. The CARES Act provided $13.5 billion to the ESSER Fund, also known as ESSER I Fund.
• The Coronavirus Response and Relief Supplemental Appropriations Act, 2021 (CRRSA), was signed into law on December 27, 2020. CRRSA provided $54.3 billion in supplemental ESSER funding, known as the ESSER II fund.
• The American Rescue Plan Act (ARPA), was signed into law on March 11, 2021, provided $122.7 billion in supplemental ESSER funding, known as the ESSER III fund.

ESSER I Fund

ESSER I funds are available for obligation by State educational agencies (SEAs) and subrecipients through September 30, 2021 with a 12-month carryover period extending it through September 30, 2022. Funds may be used for pre-award costs dating back to March 13, 2020, when the national emergency was declared. The allowable use of funds for ESSER I includes costs related to preventing, preparing for, and responding to COVID-19. ESSER I funds are required to be tracked separately from other ESSER funds.

ESSER II Fund

ESSER II funds are available for obligation by SEAs and subrecipients through September 30, 2022 with a 12-month carryover period extending it through September 30, 2023. Like ESSER I, funds may be used for pre-award costs dating back to March 13, 2020. The allowable use of funds for ESSER II includes costs allowed under ESSER I in addition to addressing learning loss, preparing schools for reopening, and testing, repairing, and upgrading projects to improve air quality in school buildings related to preventing, preparing for, and responding to COVID-19. ESSER II funds are required to be tracked separately from other ESSER funds.

ESSER III Fund

ESSER III funds are available for obligation by SEAs and subrecipients through September 30, 2023, with a 12-month carryover period extending it through September 30, 2024. As with ESSER I and ESSER II, funds may be used for pre-award costs dating back to March 13, 2020. ESSER III funds are required to be tracked separately from other ESSER funds.

Local educational agencies must reserve not less than 20 percent of their total ESSER III allocation to address learning loss through the implementation of evidence-based interventions, such as summer learning or summer enrichment, extended day programs, comprehensive afterschool programs, or extended school year programs. The entity must also ensure that such interventions respond to students’ academic, social, and emotional needs and address the disproportionate impact of COVID-19 on underrepresented student subgroups.

Remaining ESSER III funds may be used for the same allowable purposes as ESSER I and ESSER II, including hiring new staff and avoiding layoffs. LEAs are specifically authorized to develop strategies and implement public health protocols including, to the greatest extent practicable, policies in line with guidance from the CDC for the reopening and operation of school facilities to effectively maintain the health and safety of students, educators, and other staff.

Intended uses of ESSER Funds

Strategic spending plans established by LEAs are expected to include costs such as:

• training and professional development on sanitizing and minimizing the spread of infectious diseases and the purchase of supplies to sanitize and clean the LEA’s facilities;
• repairing and improving school facilities to reduce risk of virus transmission and exposure to environmental health hazards;
• improving indoor air quality;
• addressing the needs of children from low-income families, children with disabilities, English learners, racial and ethnic minorities, students experiencing homelessness, and foster care youth;
• developing and implementing procedures and systems to improve the preparedness and response efforts of LEAs;
• planning for or implementing activities during long-term closures, including providing technology for online learning;
• purchasing educational technology (including hardware, software, connectivity, assistive technology, and adaptive equipment) for students that aids in regular and substantive educational interaction between students and their classroom instructors, including students from low-income families and children with disabilities;
• providing mental health services and supports, including through the implementation of evidence based full-service community schools and the hiring of counselors;
• planning and implementing activities related to summer learning and supplemental after-school programs;
• addressing learning loss; and
• other activities that are necessary to maintain operation of and continuity of and services, including continuing to employ existing or hiring new LEA and school staff

An LEA that receives ESSER III funds must, within 30 days of receiving the funds, make publicly available on its website a plan for the safe return to in-person instruction and continuity of services. Before making the plan publicly available, the LEA must seek public comment on the plan.

Do’s and Don’ts for ESSR Funding Compliance

This graphic offers short reminders from the auditor’s perspective to assist school administrators and business officials when making decisions about ESSER funds. If you have questions or need information about complying with ESSER requirements, contact us.

© 2021