Democratic leaders in the U.S. Congress are demanding that the U.S. Department of Education immediately rescind the cancellation of extensions for spending tens of billions of dollars in pandemic emergency aid funds previously approved by Congress. In an April 7 letter to the Department, lawmakers stated: "This sudden and chaotic policy revision does not benefit students in states, school districts, or higher education institutions that are uncertain about the Department's commitment to fulfilling federal funding promises that support students." The call was led by Democratic leaders on the Senate and House Appropriations and Education Committees.

Just after 5 p.m. on Friday, March 28, U.S. Secretary of Education Linda McMahon wrote to state education chiefs, stating that the Department was moving the deadline for extending spending under the American Rescue Plan from March 30, 2026, to that day. In the letter, McMahon said: "Years after the end of the pandemic, extending pandemic-related grant deadlines—funds that are, in fact, taxpayer dollars—does not align with the Department's priorities and is therefore not worthy of exercising this discretionary authority." The one-page letter did offer states the opportunity to continue extended spending by reapplying for Department approval on a contract-by-contract basis.

As a result, state and district leaders nationwide have had to develop strategies in response to the sudden halt of previously approved spending extensions under the Elementary and Secondary School Emergency Relief (ESSER) fund. The Department had previously approved extension requests for 41 states, Puerto Rico, and the District of Columbia under the ARP-ESSER grants.

"Perhaps the new approval process will give the Department greater confidence that funds are being used for activities that ensure academic recovery, such as tutoring."

Narric Rome

Managing Director of Federal and State Policy at Accelerate

Although most states applied for and received ARP-ESSER spending extensions, the amount of funds designated for longer spending periods was relatively small. As of February, nationwide, only about 2% of the total $201.3 billion in three pandemic relief grants for public and private schools, states, and support for homeless students remained unspent. The regular spending deadline for the $121.9 billion in ARP-ESSER funds was January 28, with districts required to obligate funds (i.e., commit to spending) by September 30, 2024. Unused ESSER funds would be reclaimed by the federal government.

In late February, the Department told K-12 Dive that in states that received extensions, districts had approximately $2.5 billion in ARP-ESSER funds yet to spend. Additionally, states had about $433 million yet to spend under the ARP's Emergency Assistance for Non-Public Schools grants.

"The pandemic is over"

Some states that had requested extensions on behalf of districts are vowing to fight back. According to New York State United Teachers, the New York State Education Department, which had planned a late liquidation of $79 million, is now preparing legal action. Michigan State Superintendent Michael Rice said the state could lose more than $40 million due to the reversal of spending extensions. In a statement, Rice said 27 districts statewide had previously been approved for spending extensions, with planned projects including HVAC systems, boilers, and windows. Rice stated: "Without the promised March 2026 federal reimbursement date, districts may be forced to cut instructional spending, reduce savings, or both, to fulfill these contracts."

The pandemic is over. The Department will consider all appeals of funds directly related to pandemic learning loss recovery.

Massachusetts even said in its press release that they want the money for buildings, not learning recovery.

— Department of Education Press Secretary (@EDPressSec) April 1, 2025

Massachusetts Governor Maura Healey said the state relies on approximately $106 million in spending extensions. In a statement, Healey said: "This action is jeopardizing mental health care and math tutoring for our students, as well as projects already underway to strengthen school safety and ensure clean air in school buildings." According to the statement, the extended funds were intended for activities such as academic support, mental health services, educator professional development, and building upgrades in 20 districts. However, the Department's press secretary account said in an April 1 X post: "The pandemic is over. The Department will consider all appeals of funds directly related to pandemic learning loss recovery. Massachusetts even said in its press release that they want the money for buildings, not learning recovery."

Reversal of spending extensions

AASA (The School Superintendents Association) and other education management organizations had pleaded with the Biden administration as K-12 spending deadlines for earlier ESSER grants approached, citing the ongoing impact of pandemic-related school closures, supply chain disruptions, and labor shortages as reasons for needing longer spending periods. Specifically, these organizations were concerned about the longer spending timeline for ARP-ESSER (which Congress allocated $121.9 billion). Overall, schools, districts, and states received a total of $189.5 billion in ESSER funds.

In May 2022, the Department announced a process to consider these requests. According to Biden-era Department staff in November, all requests were approved. In February, the Trump administration said states would be responsible for fronting the remaining ESSER spending, which would then be reimbursed by the federal government. Previously, states could automatically draw down these federal funds as needed, the Department said. Now, the Department says these funds will not be available unless states appeal on a project-by-project basis. The Department said these changes were to increase transparency in the process and ensure taxpayer funds are used appropriately.

But the shifting directives have left many state and local leaders, vendors, and education finance experts puzzled about how states and districts will proceed—and if extensions are not honored, how local or state governments will fill budget gaps. Narric Rome, managing director of federal and state policy at Accelerate, a nonprofit supporting sustainable high-impact tutoring in public schools, said ESSER funds were critical for pandemic learning recovery. Accelerate helps states promote high-impact tutoring programs, some of which are partially funded by ESSER funds. He said the impact of the Department's change in direction on ESSER spending extensions is not yet known, but tutoring program leaders hope states will seek approval under the new process. Rome said: "Perhaps the new approval process will give the Department greater confidence that funds are being used for activities that ensure academic recovery, such as tutoring."

But others argue that spending extensions should never have been approved in the first place. In an article in The Daily Signal, Lindsey Burke, director of the Center for Education Policy at the conservative Heritage Foundation, wrote: "Five years after the pandemic, schools should not still be considering how to spend a windfall that Congress provided as a temporary measure intended to mitigate learning loss." Burke added: "The most heartbreaking proof that the extra pandemic cash failed to help students is the most recent National Assessment of Educational Progress results." 2024 NAEP scores showed reading and math scores for fourth and eighth graders were below pre-pandemic 2019 performance.

Considering next steps

"Changing requirements when funds have already been committed puts states and districts in a bind," said Eleka Yost, director of advocacy and research at the Association of School Business Officials International. This uncertainty is causing some states to pause projects. In an April 3 statement, the Kansas State Department of Education said it had directed contracted service providers to suspend all work dependent on pandemic emergency funds. The state said it had a balance of $22.6 million in spending extensions.

"This unprecedented action undermines the prudent financial planning of North Carolina school districts and threatens critical programs that support students."

North Carolina education leaders in a joint statement

North Carolina education leaders wrote to McMahon asking her to reconsider the fund withdrawal, stating it "threatens the financial integrity of four districts in the state." In a joint April 3 letter, the state's superintendent and state board of education chair said: "This unprecedented action undermines the prudent financial planning of North Carolina school districts and threatens critical programs that support students." Virginia education officials, in an April 3 communication with superintendents and chief financial officers, said they are working with 15 districts affected by the reversal of ESSER spending extensions. The state also plans to appeal to the Department to continue state-level programs, calling it a top priority.

Georgetown University's Edunomics Lab has been tracking spending progress of pandemic aid at the district and state levels. Marguerite Roza, director of the Edunomics Lab, said it would be most helpful to the public if districts, states, and the Department were more transparent about which public and private school programs received spending extensions and why. Roza said: "It's really hard to figure out which districts and which programs are affected by the Department's policy change."

K-12 federal pandemic relief fund spending extensions

Most states, the District of Columbia, and Puerto Rico received permission from the U.S. Department of Education to spend American Rescue Plan-Elementary and Secondary School Emergency Relief grants over an extended period.