In 2020 and 2021, Congress enacted several relief packages allocating almost $200 billion nationally to support public schools during the COVID-19 pandemic and its aftermath. Those appropriations derive from the Elementary and Secondary School Emergency Relief (ESSER) Fund, issued in phases known as ESSER I, ESSER II, and ESSER III (or the American Rescue Plan ESSER). Reportedly, MDE has received and allocated at least 90% of approximately $5.6 billion dollars in ESSER funds to local schools.
As ESSER grants wind down, school officials should be aware of upcoming deadlines to avoid forfeiting funds. Schools must “obligate” ESSER grant money to eligible programs and expenditures by specific deadlines. Funds are obligated on the date the school enters into a written binding agreement for services. The obligation deadlines for ESSER I and ESSER II funds have passed, but the ESSER III obligation deadline is September 30, 2024.
Obligation deadlines are not eligible for extension. If your school has not yet obligated all of its ESSER III grant money, now is the time to refer back to the school’s ESSER III Use of Funds Plan to identify additional projects.
In addition to the obligation deadline, school officials must ensure satisfaction of the liquidation deadline. Schools must spend, or liquidate, the funds by December 30, 2024.
Unlike the obligation deadline, the ESSER III funds liquidation deadline is eligible for extension, as explained in MDE’s September 28, 2023 memo to Michigan public schools. MDE will receive liquidation extension requests for ESSER III funds between October 1, 2024 and December 1, 2024, and evaluate whether to submit requests to the U.S. Department of Education (DOE).
Extensions, if granted, provide up to an additional 14 months to liquidate obligated funds. In January 2024, the DOE released an updated extension request form for ESSER III funds. That form requires MDE, on behalf of individual schools, to list examples of supporting documentation and to provide a cover letter explaining how the ESSER III liquidation extension request contributes to the “acceleration of academic success for students, including those furthest from opportunity and with the greatest need.” The extension form also asks for an “explanation” for late liquidation and a description of measures taken to liquidate in a timely fashion. DOE has issued guidance identifying situations that might warrant an extension.
The ESSER III allocations were the largest of the COVID-19 relief funds, so the September 30, 2024 deadline is critical for schools to obligate those funds. Schools not expecting to spend the funds by the December 30, 2024 liquidation deadline should submit an extension request to MDE within the October 1 – December 1 window.