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Legislative Update


DPI: Debt ceiling legislation will not impact COVID relief funds allocated to schools

by | Jun 7, 2023 | Federal Issue, Legislative Update Blog

From the Dept. of Public Instruction:

“Education partners, DPI is pleased to share the attached information (see below) sent by the US Department of Education confirming that the Fiscal Responsibility Act of 2023, which suspended the Federal debt ceiling, does not impact formula-driven COVID-19 relief funds awarded under the Elementary and Secondary School Emergency Relief (ESSER) program, the Emergency Assistance to Non-Public Schools (EANS) program, the Governor’s Emergency Education Relief (GEER) program, or the American Rescue Plan Elementary and Secondary School Emergency Relief – Homeless Children and Youth (ARP-HCY) program. LEAs should continue to spend and claim these funds according to their DPI approved budgets and plans by their federal deadlines (September 30, 2023 and September 30, 2024).”

Greetings, grantees –

I am writing to confirm that the bipartisan budget agreement signed by President Biden on June 2,
2023 (the Fiscal Responsibility Act of 2023), which suspended the Federal debt ceiling, does not
impact your formula-driven COVID-19 relief funds awarded under the Elementary and Secondary
School Emergency Relief (ESSER) program, the Emergency Assistance to Non-Public Schools
(EANS) program, the Governor’s Emergency Education Relief (GEER) program, or the American
Rescue Plan Elementary and Secondary School Emergency Relief – Homeless Children and Youth
(ARP-HCY) program. This is the case for the above-referenced formula-driven funds awarded
under all three of the COVID-19 relief bills: the American Rescue Plan (ARP) Act of 2021; the
Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act of 2021; and any
remaining, properly obligated funds under the Coronavirus Aid, Relief, and Economic Security
(CARES) Act of 2020.

While the Fiscal Responsibility Act of 2023 rescinds certain unobligated COVID-19 relief aid, the
Department has already fully obligated ESSER, EANS, GEER, and ARP-HCY funds to States.
Accordingly, these funds are not rescinded and States and subgrantees should continue to
spend down these resources urgently and wisely in accordance with approved State and local
plans and statutory timelines for spending. The rescissions do implicate a small amount of other
ARP funds that the Department has not yet obligated, including certain funding for the Institute of
Education Sciences. We are working to implement these reductions in a way that maintains as
much support as possible to our grantees.

For over three years, State and local leaders have worked tirelessly to invest Federal recovery
funds to address the greatest crisis to ever confront our education system. We remain committed
to doing all we can to advance the important work you are doing to administer these funds with
impact and urgency to accelerate academic achievement, address mental health needs, and ensure
that students can experience their maximum benefit.

Sincerely,

James F. Lane, Ed. D. 
Principal Deputy Assistant Secretary
Delegated the Authority to Perform the  
Functions and Duties of the Assistant Secretary  
Office of Elementary and Secondary Education 

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