Washington, D.C. — States had until March 30, 2026, to spend more than $2.5 billion in remaining COVID-19 relief funds for K-12 public education, until the U.S. Department of Education abruptly announced it was rescinding previously approved use of these funds. This recent and unexpected decision created a sudden fiscal cliff and left states and local districts grappling with greater uncertainty and even more budget gaps.
New analysis from the Center for American Progress offers insight into how this abrupt loss of Elementary and Secondary School Emergency Relief (ESSER) funds will hurt—and is already hurting—the 41 states previously approved for the March 2026 deadline, as well as the District of Columbia and Puerto Rico. It includes a map showing how much money each state had left to spend before that deadline was rescinded.
For example:
- Unspent American Rescue Plan (ARP) ESSER funds ranged from $2.5 million in South Dakota to $331 million in Puerto Rico.
- Baltimore City Public Schools terminated all in-school tutoring and after-school programs due to the rescission.
- Massachusetts reported a $106 million cut to its K-12 education budget as a result.
- An Arizona school district approved to use these funds to cover math and reading tutoring as well as infrastructure repairs had to halt both initiatives.
- Oregon—already struggling with K-12 math and reading proficiency—ended its efforts to develop high-quality instructional content to boost these skills.
“All of these ESSER funds had been designated to specific projects, and many states already had active contracts in place with providers,” said Paige Shoemaker DeMio, senior policy analyst for K-12 Education Policy at CAP and co-author of the column. “Although 16 states plus D.C. have taken legal action to undo the rescission, the immediate impact is reverberating across the country right now.”
“The Department of Education’s decision will have catastrophic effects on student achievement in America,” said Weadé James, senior director for K-12 Education Policy at CAP and co-author of the column. “It is sure to result in poorer academic outcomes for our students, and it will prevent our educators from receiving the professional development they need to be effective.”
Read the column: “The Sudden Loss of Federal COVID-19 Relief Funds Will Hinder K-12 Academic Progress” by Paige Shoemaker DeMio and Weadé James
For more information or to speak with an expert, please contact Mishka Espey at [email protected].