Liquidation Extension Available for American Rescue Plan (ARP) Act Elementary and Secondary School Emergency Relief (ESSER) Funds

Relief may be in sight for states and districts unable to spend their Elementary and Secondary School Emergency Relief (ESSER) III funds by approaching deadlines. 

Here’s what educators need to know:

• The new guidelines extend the liquidation period up to 14 months beyond the January 28, 2025 deadline – or until late March 2026.
• Districts will request extensions through their state education agency; states will seek permission from the Education Department on behalf of their districts.
• The Education Department noted in the September letter that a request template and an updated FAQ will be available this fall. 

According to a letter released to state education departments in September by the U.S. Department of Education, an extension for American Rescue Plan (ARP) Act ESSER funds is now available to states and districts who apply and are approved. Currently ARP Act ESSER funds must be obligated by September 30, 2024, and liquidated 120 days later, by January 28^th, 2025. The new guidelines extend the liquidation period up to 14 months beyond the 120 days – or until late March 2026. Districts will request extensions through their state education agency; states will seek permission from the Education Department on behalf of their districts.

Like extensions provided under the Coronavirus Aid, Relief, and Economic Security (CARES) and Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Acts, the Department of Education has the authority to approve liquidation extension requests. States must continue to provide district oversight to ensure expenses follow guidelines for allowable uses. Additionally, the Department of Education requires an “explanation about how liquidation extension contributes to the acceleration of academic success for students and how continuing these investments may extend or expand on a continued path of academic recovery.”

Under the ARP Act, more than $122 billion was made available to states and districts to aid response to the impact of the coronavirus pandemic. Burbio, a data service that aggregates school and community data, reported on October 16, 2023, that many districts have spent less than half of their ESSER funds. Burbio reports, “Our analysis indicates there is just over $50 billion available to be spent.” 

The Education Department noted in the September letter that a request template and an updated FAQ will be available this fall. 

Do you have funding questions?

We have answers and resources to help get you started with ESSER Funding. Speak to a representative today.

Laura Byars

Manager, Curricular Alignment

As Manager, Curricular Alignment, Laura leads teams that create, curate, and align content to PreK-12 educational needs. Before coming to Follett, she taught language arts, science, and a summer reading intervention program in a high-performing school district in the western Chicago suburbs. She has master’s degrees in Teaching and Reading & Literacy. Laura has a passion for literacy learning. When she’s not working, you can find her reading picture books to her grandson or enjoying an outdoor activity with her husband.