ESSER Liquidation Update
April 15, 2025
UPDATE 5/12: In light of the May 6, 2025 ordered preliminary injunction (PI) in the New York litigation, ED has modified the ESF late liquidation deadline change at issue in the case (which includes ESSER) to be effective May 24, 2025 for the States that filed the lawsuit. The PI order expressly authorized the Department to “modify [ ] ED’s previously approved periods for Plaintiffs to liquidate their obligations under the ESF” by “providing notice to Plaintiffs at least fourteen (14) days prior to the effective date of such modification.” Therefore, the letter dated May 11th officially notifies the Plaintiff States that the Department is modifying the period to liquidate obligations under the ESF programs to terminate on May 24, 2025 and directs applicable States to use this 14-day notice period to wind down their existing obligations for work already completed. The States that this new deadline applies to includes: Arizona, California, the District of Columbia, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, New York, Nevada, Oregon, and Pennsylvania.
- State/Outlying Area
- Grant Award Number
- Entity requesting the extension (State entity or subrecipient name)
- Name and short description of the project (e.g., contracted activity)
- Vendor (if the request is to reimburse a specific contractor/vendor)
- Requested timeframe for extension
- Amount of funds requested for extension
- A brief description of how a particular project’s extension is consistent with the authorizing statute(s)
- A justification of why the Department should exercise its discretion to grant your request
- Whether the particular project mitigates the educational effects of COVID and, if so, how
- An assurance that the funds were properly obligated no later than September 30, 2024.
UPDATE 5/6: Today a New York District Court ruled in favor of the 17 states that challenged ED’s changed ESSER’s changed liquidation policy. Specifically, ED is preliminary enjoined from enforcing or implementing the March 28th guidance that rescinded the prior approvals granted by the U.S. Department of Education extending the periods of time for Plaintiffs to liquidate their funding.
UPDATE 4/29: Last week, ED rolled out on how States can apply for additional time to draw down ESSER funding including the opportunity to appeal denials for additional time.
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On 3/28/25, the Department informed SEAs that the Administration has canceled any prior approval for “late liquidation” of remaining funds from a variety of federal pandemic recovery funds, including American Rescue Plan Elementary and Secondary School Emergency Relief (ESSER and Homeless Children and Youth (HCY) funds. The letter also states that SEAs can reapply for an extension “on an individual project specific basis” by explaining “(1) how a particular project’s extension is necessary to mitigate the effects of COVID on American students’ education, and (2) why the Department should exercise its discretion to grant your request.”