The Linda McMahon-led Department of Education on Friday cancelled billions of dollars in ESSER spending after promises from the Biden administration that states would receive reimbursements as part of a 120-day liquidation period past the original Sept. 30, 2024 deadline.
As of February, the Department suggested that 41 states and the District of Columbia had another year to spend the remaining $122 billion of the 2021 American Rescue Plan dollars. But in a letter to state chiefs obtained by The74, McMahon now says it’s “unreasonable” for education leaders to rely on the past administration’s decisions.
However, she did say that ESSER spending reimbursements might be considered if states can make a case for how their projects directly address COVID’s impact.
“The Department has concluded that the further extension of the liquidation period for the aforementioned grants, already well past the period of performance, was not justified,” wrote McMahon. “You and your subrecipients have had ample time to liquidate obligations.”
This announcement may not apply to districts that have already spent their funds and submitted their reimbursement requests, says Marguerite Roza, director of Georgetown University’s Edunomics Lab, which played a crucial role in guiding districts in their ESSER spending.
Yet, this decision still comes as a surprise. “I can’t speak for others, but I did not see this announcement coming,” says Roza. “I will say that we always warned that extensions were tenuous and urged districts and states to stay on top of their spending and reimbursements.”
States are already feeling the pressure as uncertainty over project funding hangs in the balance. New Jersey Gov. Phil Murphy on Monday expressed concern over the tens of millions of ESSER spending lost for school health and safety-related projects.
“These cuts are reckless and irresponsible, allowing us very little time for contingency plans,” Murphy said in a statement. “New Jersey is proud of its best-in-the-nation public school system and we will do everything we can to restore this funding and maintain our reputation for excellence in public education.”
Maryland is also facing a more than $400 million loss as state officials were awaiting reimbursements for ESSER spending on tutoring, reading materials, after-school programming and construction projects.
“‘Shocked’ does not begin to describe our reaction when we received the notification late Friday evening that the U.S. Department of Education had immediately rescinded reimbursements to states and districts for approved recovery funds,” State Superintendent Carey Wright and Board of Education President Joshua Michael said in a statement.
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