Today, September 30, 2024, marks the final day for U.S. school districts to commit their American Rescue Plan (ARP) funds, the last and largest allocation under the Elementary and Secondary School Emergency Relief (ESSER) aid. As schools continue to recover from the academic disruptions caused by the COVID-19 pandemic, this milestone raises questions about how districts will adapt without further federal aid.
The ARP funds, part of a broader $189.5 billion ESSER package allocated by Congress, have provided essential support for school districts over the last five years. These funds were distributed through three major relief packages: ESSER I (CARES Act), ESSER II (CRRSA Act), and ESSER III (ARP). The last of these, ESSER III, provided $121.9 billion, helping schools address the learning losses and infrastructure needs exacerbated by the pandemic.
Why Today Matters
After today, school districts can no longer enter new contracts or promise further spending using ARP funds. However, spending on existing contracts, such as vendor services, can continue until January 28, 2025, the deadline for liquidating the funds. Some districts have even received extensions from the U.S. Department of Education, allowing them to spend ESSER funds through March 2026.
Where Did the Money Go?
The ESSER funds were flexible, allowing districts to address local priorities. While at least 20% of ARP funds were required to tackle learning loss, districts used the remaining funds for a variety of needs, including staffing, technology, air filtration systems, and social distancing measures. Staffing costs, in particular, were a major expenditure, with nearly 50% of ARP funds going toward salaries and hiring.
The Path Forward
As the obligation window closes, districts now face the challenge of continuing their recovery efforts without further federal assistance. Many are preparing for a “funding cliff,” particularly in high-poverty areas, where the loss of these emergency funds may be felt most acutely.
The next major deadline is January 28, 2025, when ARP spending must end, signaling the full transition to a post-ESSER funding landscape for K-12 education.
