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Press Release

U.S. Department of Education Updates Guidance on COVID-19 Funding

In line with President Trump’s commitment to increased transparency and accountability regarding federal expenditures, the U.S. Department of Education today announced it is updating its policies related to the remaining $4.4 Billion in state COVID-19 Pandemic relief funding. Beginning today, all future payments under the CARES Act, CRRSA Act, and ARP Act spent on allowable expenditures must be paid by the states in advance and then submitted to the U.S. Department of Education for reimbursement. 

Prior to this announcement, states could draw down on existing awards to pay for approved services without proof that the funds were used for authorized purposes. The Department is changing the requirements to ensure taxpayer funds are expended responsibly, and will require states to keep the receipts to confirm this. 

All expenditures must fall under the approved expenditures as outlined in guidance for ESSER, ARPA, and HEERF.   

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Page Last Reviewed:
February 19, 2025