Education Stabilization Fund: Overview of Emergency Relief for Schools

The Education Stabilization Fund (ESF) was established through a series of federal acts to provide emergency relief to states, local governments, and schools in response to the COVID-19 pandemic. These funds aim to assist with safely reopening schools, maximizing in-person instruction, and addressing learning loss resulting from the pandemic. The Department of Education released a Frequently Asked Questions (FAQ) document outlining eligible uses of the Elementary and Secondary School Emergency Relief (ESSER) fund as well as the Governor’s Emergency Education Relief (GEER) fund - two of the primary programs in the Department’s Education Stabilization Fund.

Legislative History and Funding

The ESF was authorized and funded by three key pieces of legislation:

Coronavirus Aid, Relief, and Economic Security Act (CARES Act; P.L. 116-136): Enacted on March 27, 2020, this act established the ESF to "prevent, prepare for, and respond to coronavirus, domestically or internationally."
Coronavirus Response and Relief Supplemental Appropriations Act, 2021 (CRRSAA; Division M of the Consolidated Appropriations Act, 2021 [P.L. 116-260]): Enacted on December 27, 2020, this act reauthorized the ESF and provided additional appropriations.
American Rescue Plan Act of 2021 (ARPA; P.L. 117-2): Enacted on March 11, 2021, this act provided further mandatory appropriations for specific ESF programs.

The total appropriations provided for the elementary and secondary education programs providing support to states and the outlying areas that are discussed in this report are $201.485 billion. Federal funds provided through the ESF Higher Education Emergency Relief Fund (HEERF) for postsecondary education are not discussed in the report.

A total of $277.7 billion was appropriated for ESF programs through a combination of discretionary and mandatory funding, with $247.0 billion provided in FY2021 under the CRRSAA and ARPA.

Components of the Education Stabilization Fund

The ESF comprises several key programs designed to support various levels of education:

Elementary and Secondary School Emergency Relief (ESSER) Fund

The ESSER Fund provides grants to State Educational Agencies (SEAs) for the purpose of providing Local Education Agencies (LEAs) with emergency relief funds to address the impact of the COVID-19 pandemic on elementary and secondary schools across the nation. The ESSER Fund was authorized and funded by the CARES Act, CRRSAA, and ARPA. It received $13.229 billion under the CARES Act in FY2020 (ESSER I), $54.311 billion under the CRRSAA in FY2021 (ESSER II), and $122.775 billion under the ARPA in FY2021 (ESSER III), for a total of $190.315 billion. Of the funds appropriated for ESSER III, the Secretary of Education was required to reserve $800 million for the education of homeless children and youth.

Each SEA was required to provide at least 90% of the funds received to LEAs in the state through formula grants based on each LEA's share of prior year ESEA Title I-A funds.

Governor's Emergency Education Relief (GEER) Fund

The GEER provides grants to governors for the purpose of providing LEAs, institutions of higher education (IHEs) and other education-related institutions with emergency support at their own discretion. The GEER Fund was authorized and funded by the CARES Act and CRRSAA. It was not included in the ARPA. The GEER Fund received $2.953 billion under the CARES Act in FY2020 (GEER I) and $4.053 billion under the CRRSAA in FY2021 (GEER II) for a total of $7.006 billion.

The GEER funds were allocated to states by formula based on two formula factors: (1) 60% was awarded based on each state's share of individuals ages 5-24 relative to the total number of individuals in this age group in all states, and (2) 40% was awarded based on each state's share of children counted under Section 1124(c) of the ESEA relative to the total number of children counted under this section for all states.

Emergency Assistance to Non-Public Schools (EANS) Program

From the CRRSAA funds, the Secretary of Education was required to reserve $2.750 billion to provide services and assistance to non-public schools under the EANS program (EANS I). While the GEER Fund did not receive an appropriation under the ARPA, the EANS program (EANS II) received a separate appropriation of $2.750 billion under the ARPA. All EANS funds were allocated by formula to states based on their proportional share of children ages 5-17 enrolled in non-public schools from families with incomes at or below 185% of the poverty level.

A non-public school receiving services or assistance under the EANS program is required to use such services or assistance to address educational disruptions from the COVID-19 emergency. Authorized activities under the EANS program were not as broad as those permitted under the ESSER Fund or GEER Fund.

ARP-HCY Program

Under the ARPA, from the total appropriated for ESSER III, the Secretary was required to reserve $800 million for the ARP-HCY program to identify homeless children and youth and provide these youths with wrap-around services and assistance needed to attend school and fully participate in school activities. After reserving $1 million for national activities, the remaining funds were awarded to states by formula in two tranches based on their share of prior year Title I-A grants authorized by the ESEA.

Outlying Areas

Both the CARES Act and CRRSAA included a reservation of funds from the total ESF appropriation for the outlying areas, providing $153.8 million and $409.4 million, respectively. While the ARPA continued to provide appropriations for some programs (e.g., ESSER) that were authorized under the ESF by the CARES Act and the CRRSAA, the ARPA included funding for these programs as stand-alone programs rather than providing funding under the ESF; thus, no reservation of funds under the ESF was provided for the outlying areas under the ARPA.

Following the enactment of the CARES Act, ED announced on May 5, 2020, that it would award the full allowable 0.5% of the ESF overall appropriation to the outlying areas (§18001). ED calculated grant amounts for each outlying area in accordance with the provisions of the GEER Fund and the ESSER Fund.

Allowable Uses of Funds

The Department of Education’s FAQ document specifies that funds should generally be used to prevent, prepare for or respond to the COVID-19 pandemic including its impact on the social, emotional, mental health and academic needs of students. Highlights from the FAQ include permission for the funds to support premium pay for educators and other school personnel, job-training for recent graduates whose schooling was impacted by the pandemic, and vaccination programs for students and staff.

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Additionally, state lawmakers cannot limit how districts use the biggest pot of money under relief laws. They can, however, restrict how much money districts can use on administration, as part of their oversight of specific portions of COVID-19 aid. Further, these funds may be used to replenish lost revenue, meaning they can be used to bridge State and/or local budget shortfalls if the deficit is related to the COVID-19 pandemic and the ESSER and GEER funds are needed for education-related expenses. Funds may also be used for school renovations which include improved heating, ventilation and other projects that would help schools’ air quality.

Period of Availability and Liquidation of Funds

The period of availability of funds (i.e., deadline for grantees to obligate funds) for the ESSER Fund, GEER Fund, EANS program, ARP-HCY, and funds for the outlying areas varies for funds appropriated under the CARES Act, CRRSAA, and ARPA.

Under the CARES Act, the period of availability of funds was through September 30, 2021.
Under the CRRSAA, the period of availability of funds was through September 30, 2022.
Under the ARPA, the period of availability of funds was through September 30, 2023.

For the ESSER Fund, GEER Fund, ARP-HCY program, and funds for the outlying areas, Section 421 of the General Education Provisions Act (GEPA), commonly referred to as the Tydings period or Tydings amendment, extends the period of obligation of funds by governors, SEAs, LEAs, and outlying areas by one year beyond the period of availability included in statutory language.

For the EANS program, funds were required to be obligated by the SEA within six months of receipt by the state to provide services and assistance to non-public schools. Funds that were not obligated within that time frame were to revert to the governor for use under the GEER Fund.

For state-administered programs (which includes the programs administered by the outlying areas), ED may extend the period for the liquidation (i.e., expenditure) of funds beyond the 120-day period following the Tydings period by approving late liquidation requests.

Oversight and Reporting

Given ongoing congressional interest in state and national data on expenditures under these programs, this report provides the amount of grant funding each state4 or outlying area received under each relevant program; the cumulative outlays (expenditures) by state or outlying area that were posted on USAspending.gov as of October 16, 2024;5 and the percentage of grant funds that have been expended. No data are provided on funds that may have been obligated by states or outlying areas but not yet expended.

Both USAspending.gov and the ESF Transparency Portal include data on grant awards and expenditures under the ESSER Fund, GEER Fund, and EANS program by state, as well as data on awards and expenditures for the outlying area programs.

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