Coronavirus Resources for Schools

Impacts of COVID-19 on K12 Federal Funding

Contains resources from school districts and public health agencies.

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IMPACTS OF COVID-19 ON K12 FEDERAL FUNDING The Coronavirus Aid, Relief, And Economic Security (CARES) Act (H.R. 748) is a $2 trillion stimulus package designed to combat the economic trauma imposed by the COVID-19 global health crisis. In response to nationwide school closures, plummeting enrollment rates, and devastating revenue losses for states, the Education Stabilization Fund (ESF) was established to provide much-needed emergency funding to educational organizations. EDUCATION STABILIZATION FUND Within the CARES Act, the Education Stabilization Fund is a federal appropriation that provides critical support to elementary, secondary, and postsecondary education, as well as to early education and childcare providers. Of the $30.75 billion that composes the ESF, 98 percent of funds go towards the following emergency relief programs: The Governor's Emergency Education Relief Fund ($2.95 billion), the Elementary and Secondary School Emergency Relief Fund ($13.23 billion), and the Higher Education Emergency Relief Fund ($13.95). States are required to comply with a few notable requirements when accepting these funds: first, states must "maintain support for elementary and secondary education and higher education (funding to institutions and need-based financial aid) in fiscal years 2020 and 2021 equal to their average support for the preceding three years." When necessary, the Secretary of Education may waive this provision for states that have "experienced a precipitous decline in financial resources." Any entity that receives funds from the ESF must continue to pay its employees and contractors "to the extent practicable during the period of any disruptions or closures related to coronavirus." 1 GOVERNOR'S EMERGENCY EDUCATION RELIEF FUND The Governor's Emergency Education Relief Fund is a formula program under the ESF, distributed at the state level, which governors can redistribute at their discretion. The $3 billion available through this Fund will be allocated to states based primarily on population, using two formula factors 2 : ▪ 60 percent of the funds will be awarded to states based on each state's share of individuals ages 5 through 24 (using U.S Census Bureau Data for 2018); and ▪ 40 percent of the funds will be awarded to states based on each state's share of children counted in Section 1124(c) of the Elementary and Secondary Education Act (ESEA) relative to the total number of children counted in Section 1124(c) for all states. 1 Reid, A. "CARES Act Gives State Education Funding, Flexibility in Wake of COVID-19." National Conference of State Legislatures. Retrieved from https://www.ncsl.org/blog/2020/04/01/-cares-act-gives-state-education-funding- flexibility-in-wake-of-covid-19.aspx 2 "Estimated State Grants Under the Education Stabilization Fund Included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act." Congressional Research Service. Retrieved from https://www.politico.com/states/f/?id=00000171-31b8-da0d-a17b-fffb32a90000

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