Reversal of ESSER funding extensions is impacting local afterschool programs

Update: June 30, 2025: On June 26, 2025, the Department of Education issued a “Dear Colleague” letter to State Education Chiefs concerning extensions to use of ESSER and other Covid relief funds. The reimbursement process has been revised again back to how the process before March 28, 2025, when the Secretary of Education stopped all Covid relief extension payments and required resubmittal to ensure alignment with new Executive Orders. Based on the change from late week, states will receive the payments they anticipated before March 28, depending on the state. Read the guidance.

Update: May 13, 2025: On May 5, a Preliminary Injunction Order, on behalf of the 16 states and Washington, D.C. filing the lawsuit, requires the ESSER funding under the original extension continue to flow to those states during the litigation process as reported in an K-12 Dive Article .The states in the lawsuit that will now be expected to have continued access to those funds are: Arizona, California, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, New York, Nevada, Oregon, Pennsylvania, and the District of Columbia.

On March 28, the U.S. Department of Education announced a new policy in a letter to State Education Chiefs, immediately canceling all extensions of Elementary and Secondary Education Emergency Relief (ESSER) funds and establishing a new policy for states to re-request any necessary extensions.

The sudden policy change has already impacted the afterschool and summer learning field. 40 states had received permission for extended spending through March 28, 2026 for projects where funds were obligated but not yet liquidated by the September 30, 2024 deadline. The ESSER funding has been used effectively since 2021 to accelerate learning and provide comprehensive supports to students through local afterschool and summer learning programs. An analysis by the Afterschool Alliance found that more than $10 billion in ESSER funds supported 5 million students in afterschool and summer programs between 2021 and 2023.

The clawback of previously approved funding extensions is resulting in students losing access to evidence-based programs that are addressing learning loss. In Baltimore, Maryland the loss of funds (which at the state level amounts to more than $400 million of expected reimbursements eliminated) led to the immediate closure of afterschool programs and activities for more than 3,000 students across 44 schools.

States have been considering options given the suddenness of the change and need for continued payments to already contracted entities. Programs, schools, and partners affected by the policy change may find it helpful to prepare answers to the form and coordinate with the state on a submission if they want to continue using ESSER funds. There is a process for states to apply on behalf of any individual projects that still depend on those funds. In addition, several states have filed lawsuits to retain access to the funds.

According to a recent EdWeek article, at least 3 states have written to Secretary McMahon regarding the change in extension policy. On April 10, several states, including Illinois where more than $77 million was rescinded, sued the U.S. Department of Education and Secretary Linda McMahon in federal court to reinstate the previous extension date of March 28, 2026. In a letter to the Secretary, Mississippi mentioned that the state’s investments in instructional services designed to address learning gaps had already helped the state to achieve its highest ever scores on the National Assessment for Educational Programs tests and feels the loss of funds would “waste both the initial investment and undermine progress made.” Kentucky’s letter argues that re-submitting a rationale for an extension request would be excessively burdensome – highlighting that Congress had earlier made clear an intent to minimize administrative burden. They also noted that having been provided an extension in writing by ED in September 2024, the state had entered into legally binding contracts to which they are now tied. The state of Missouri is asking the U.S. Department of Education to reconsider its decision to end the extension period for spending $32 million in ESSER funds that was supporting statewide afterschool programs as well as statewide literacy and math consultants.

The April 3 Dear Colleague letter specifying how states can now ask to receive an extension requires 10 pieces of information for each project including a description of how the particular project is necessary to mitigate the effects of COVID on American student’s education and why the Department should exercise its discretion to grant the funding extension request. The letter also clarifies “States and Outlying Areas may submit requests individually or in batches.”

The Department of Education did not include how the Department will be evaluating the requests or any expected timeline for making the funds available again.

These relief funds have made a measurable impact on student learning. It would be a huge loss for our students and their families to have their programs cut short.

For those who want to share how these changes have been impacting their programs or families, please feel free to reach out to us directly so we can advocate on your behalf. Sign up to receive our emails, as we will soon send out a quick survey to understand the impacts of the rapidly changing federal funding landscape on the afterschool and summer field.