ESSER Funding in 2026: Are Funds Still Available For Schools?

Over the past several school years, federal ESSER (Elementary and Secondary School Emergency Relief) funds have played a major role in K-12 operations — from tutoring and after-school programs to staffing and learning recovery. As of January 19, 2026, that funding era is entering its final phase.

This update reflects verified, recent sources only (last six months) and explains what remains of ESSER funding and what school leaders should expect next.

ESSER Funding Status as of January 2026

ESSER funding was distributed in three federal waves:

• ESSER I (CARES Act, 2020)

• ESSER II (CRRSA Act, 2021)

• ARP ESSER, sometimes referred to as ESSER III (American Rescue Plan, 2021)

Combined, these programs provided more than $190 billion in federal relief to states and school districts nationwide.

All three ESSER programs are now closed to new allocations. What remains in 2026 is limited to final liquidation of funds that were already obligated before prior deadlines, primarily under ARP ESSER.

According to the U.S. Department of Education, the ESSER obligation deadlines have passed, and no new ESSER funding rounds are active in 2026. The current activity relates only to spending previously approved funds during the allowed closeout period.

Late Liquidation Extensions: What Is Still Allowed

A key development over the past six months has been clarification around late liquidation authority for ARP ESSER funds.

In early 2025, the U.S. Department of Education rescinded earlier approvals for late liquidation, which would have required states and districts to halt spending even for already-approved obligations. This decision created widespread uncertainty for districts that had long-term contracts in place.

By June 2025, the Department reversed that position. Federal guidance confirmed that states with approved extensions may continue liquidating previously obligated ARP ESSER funds through March 30, 2026, while related legal proceedings continue.

This does not represent new funding. It simply allows districts to complete spending on commitments that were made before the original obligation deadline.

What This Means for Schools in 2026

Budget Pressure Is Increasing

As ESSER funds wind down, districts are returning to budgets supported primarily by state and local funding. Many districts relied on ESSER for staffing, tutoring, and intervention programs that are now difficult to sustain without replacement funding.

Recent district reporting shows growing concern about budget gaps tied directly to the expiration of one-time federal relief dollars.

Planning Uncertainty Has Been Real

Changes in federal guidance over the past year forced districts to revise spending plans mid-cycle. While liquidation timelines are now clearer, the uncertainty itself affected staffing decisions and vendor contracts in many regions.

No New ESSER Money Is Coming

There are no active ESSER grant applications in 2026. Congress has not authorized additional COVID-era education relief programs, and the Department of Education has not announced any successor funding stream comparable to ESSER.

What Remains and What Is Ending

• ARP ESSER liquidation deadline: March 30, 2026 for states with approved extensions

• New ESSER allocations: None

• Status of remaining funds: Administrative closeout only

After March 2026, ESSER funding will be fully closed from a federal standpoint.

Why ESSER’s End Affects Staffing

ESSER funds were commonly used to support:

• Intervention and tutoring programs

• Additional classroom support staff

• Short-term staffing stabilization during COVID disruptions

As those funds expire, districts must either absorb costs into regular budgets or reduce programs. This shift is already influencing hiring patterns, including substitute and supplemental staffing demand.

ESSER in Plain Terms

ESSER functioned as a temporary federal bridge during an unprecedented disruption. That bridge has largely been crossed.

• The funding surge occurred in 2020–2021

• Spending peaked during 2022–2024

• 2025–2026 represents the final closeout phase

Once the liquidation window closes in spring 2026, the ESSER era will be fully over.

Key Takeaways for School Leaders

• ESSER is no longer issuing new funding in 2026

• The final liquidation deadline for approved ARP ESSER spending is March 30, 2026

• Districts are now operating without the federal relief cushion that shaped budgets for several years

Understanding where ESSER stands today helps schools plan staffing, budgeting, and instructional support strategies for the post-relief landscape.