$191B in Relief Funds for Schools: Where Did the Money Go?

This post was originally published on Word In Black.

By: Aziah Siid

When the White House set aside $191 billion to help schools reopen safely after COVID-19 lockdown, they saw an opportunity to reverse decades of underinvestment in K-12 schools as well as a chance to address the emotional needs of students whose lives were disrupted by lockdowns, remote learning and graduation ceremonies over Zoom.

A new report examining how the money authorized under the federal Elementary and Secondary School Emergency Relief Fund was spent shows that districts used nearly half of it to boost academics, along with students’ social and emotional needs. But they spent just 3.3% specifically on mental health support for staff and students.

The report by Center for American Progress, a center-left think tank, also found that states have left a total of about $25 billion, or 20% of funding,  on the table after the October deadline, money they will have to return to the federal government if they haven’t filed for an extension.

Money Well Spent?

Authors Weade James and Paige DiMio examined what states and districts could’ve done differently, and how schools plan to continue to support much-needed programming now that ESSER funds have run out.

“We don’t want to just uplift the good work that states have done.” James, CAP’s senior director of K-12 education policy, tells Word In Black.

“They’ve used almost 80 percent of the funding to really address some of the gaps,” including hiring teachers and tutors, making sure students have access to upgraded technology and addressing learning loss.

Still, “we want to use this as an opportunity to think about what were some of the lessons from ESSER based on the many uses of these funds, and how we can then improve federal-based programs in the future,” she said.

Congress authorized the money at the height of the pandemic, helping school districts pay for sudden, costly expenses, including remote learning after the shutdown and reopening safely as the pandemic subsided. Districts, particularly in majority-Black communities, used some of the money to pay for things that enhanced students’ education: tutoring, extended summer learning, afterschool programs, pay raises for staff, and more.

But some advocates believe mental health should be more of a priority, especially for Black K-12 students. In recent years, educators and elected officials say they are seeing evidence that, children and adolescents are wrestling with poor mental and emotional health: absenteeism, discipline problems decreases in academic performance and an alarmingly high suicide rate.

Federal ESSER spending guidelines fell into four categories: operational continuity, or keeping the schools running smoothly; physical health and safety, which covers building and facilities upgrades; meals assistance, or making sure students are fed; and mental health supports, including hiring mental health providers for students.

How States Used ESSER 

The CAP report found that local districts spent 49% of ESSER funds on academic, social, and emotional needs, mostly to address online teaching and reverse learning loss. They spent 32% on operational continuity, 15.4% on physical health and safety, and 3.3% on mental health support.

Under ESSER, state education agencies had to put 5% of their funds towards addressing learning loss, 1% for after-school activities, and 1% for summer learning programs.

The CAP report found that as of March 2024, states had sent more than 29 percent of state ESSER funds “on tutoring and accelerated learning, and more than 21 percent were spent on summer enrichment, after-school programs, and efforts to extend the school day or year.”

At the same time, the 10 states with the lowest student populations “have spent on average approximately 9% less of their funds than the 10 states with highest student populations,” according to the report. Further, “the 10 states who received the smallest amounts have spent on average roughly 10.5% less of their funds” than larger states.

By July 31, 2024, ”more than one-quarter of states and territories have spent less than 75 percent, with the overall percentage of ESSER funds spent at 79.5 percent, leaving more than $25 billion left to be spent by January 28, 2025,” according to the report. “The only grant recipient that had spent less than half of its ESSER funding was Washington, D.C., at 44.4%.”

Last Chance Extension 

Still, states have one last chance to spend the money: an extension that will give them until March 2026 to use up the ESSER allocations. As of July 31, 2024, only Puerto Rico, Delaware, Kansas, Nebraska, and Kentucky have been approved for an extension to use the funds.

James says the spending data makes the impact of ESSER funding harder to assess.

“Some states have done a great job of communicating that, like ‘Here’s how the funds have been used,’” he says. “But we’re still not at the point where there’s been a lot of analysis and discussion around impact in the individual states.”

For example, state educational agencies involvement can help ensure that local districts with strained human resources, have the support to implement promising instruction and high-quality programs and can fully maximize their utilization  of funds.

“I think what we can do differently is to establish some type of body at the state level that is sort of responsible for planning and implementing how emergency funds are used,” James says. How can we kind of have a body established for these types of emergency cases that can help to run things and implement things more, more smoothly.”