Secretary of Education Linda McMahon recently informed states that an expected funding extension related to the ESSER Fund, established for emergency pandemic relief, has been rescinded. Initially, states were granted extensions to utilize about $3 billion in unspent funds until March 2026 due to pandemic impacts. However, McMahon announced the new deadline is now March 28, 2025, which has left several states, some having budgeted or contracted based on earlier assurances, scrambling to address the sudden loss of funding.
After careful review, the Department is modifying the liquidation period to end on March 28, 2025. The Department has concluded that the further extension of the liquidation period for the aforementioned grants, already well past the period of performance, was not justified.
The effect on states ranges considerably - from just $18,000 in Hawaii to more than $250 million in Pennsylvania - but even the 10 least affected states average $2.81 million in lost funds.
#esser-fund #education-funding #secretary-of-education #budget-constraints #state-education-departments
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