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Education Stabilization Fund Liquidation Extensions

Education Stabilization Fund Liquidation Extensions

On March 28, 2025, U.S. Secretary of Education Linda McMahon notified Chief State School Officers that the Department was modifying the time period to liquidate obligations under the Education Stabilization Fund, including all programs funded by the Coronavirus Response and Relief Supplemental Appropriations (CRRSA) and American Rescue Plan (ARP) acts, to end on March 28, 2025 at 5:00 PM ET.

On May 6 and June 3, 2025 the United States District Court for the Southern District of New York entered a preliminary injunction in New York et al. v. Department of Education et al., 1:25-cv-02990-ER, enjoining the Department from “enforcing or implementing as against Plaintiffs” the Secretary’s March 28 revocation of the extension period and the creation of the project-specific liquidation extensions for 16 plaintiff states and the District of Columbia.

Liquidation Extensions

As announced in the Department’s June 26, 2025 letter, all States can continue to liquidate funds per any previously-approved liquidation extensions for ESF programs in place prior to March 28, 2025 during the pendency of this litigation and unless and until the Department is allowed to uniformly apply the policy described in the March 28 letter to all States.

States should submit reimbursement or route pay requests (depending on the specific State) according to the processes in place prior to March 28, 2025. Payment requests, including required information and documentation, should be submitted to the corresponding program office: 

See the Frequently Asked Questions (FAQs) provided in the Liquidation Extension Resources for more information. 

Opportunity to Request New Project-Specific Extensions

Previously submitted requests for project-specific extensions will no longer be processed as of June 26, 2025 unless the request is for a new extension that falls outside the State’s previously-approved liquidation extension in place prior to March 28, 2025. See the Frequently Asked Questions (FAQs) provided in the Liquidation Extension Resources for more information. 

Project-Specific Review Process

As of June 26, 2025, the Department received over 675 project-specific requests from 34 States and Outlying Areas: American Samoa, Arkansas, Arizona, California, Colorado, Connecticut, Georgia, Guam, Iowa, Indiana, Kansas, Kentucky, Maryland, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, North Carolina, North Dakota, Ohio, Oklahoma, Puerto Rico, South Carolina, South Dakota, Tennessee, Texas, Utah, U.S. Virgin Islands, Vermont, Virginia, West Virginia, and Wisconsin.

As of June 26, 2025, the Department reviewed and issued determinations for over 500 project-specific requests from the following States: American Samoa, Arizona, Colorado, Connecticut, Georgia, Guam, Iowa, Indiana, Kansas, Kentucky, Montana, Mississippi, Missouri, Montana, New Hampshire, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Utah, U.S. Virgin Islands, Vermont, Virginia, West Virginia, and Wisconsin.

The Department will use the following process to review each new request as it is received and provide notice to States of approval or denial. 

Step 1: Receive request from SEA in the corresponding OESE program office mailbox. 

Step 2: Program Office Reviewer reviews requests, including provided documentation, and may follow up with the requestor to seek additional information as needed to process the request.

Step 3: Program Office Reviewer provides initial summary of review to program Office Senior Leadership.

Step 4: Program Office Senior Leadership approves/denies request.

Step 5: Program Office Reviewer prepares approval/disapproval letter for program office senior leadership signature, including reasons for approval/disapproval. 

Step 6: Program Office transmits approval/disapproval letter to requesting SEA official. 

Project-Specific Opportunity to Appeal

A State agency whose project-specific request described in the March 28 letter is denied may request an appeal of these decisions consistent with 2 C.F.R. § 200.342. As to each decision for which an appeal is sought, the requestor should provide additional information to support the contention that the project provides necessary services that directly mitigate the effects of the COVID pandemic on students’ education. An appeal must be submitted no later than 30 calendar days from the receipt of a denial. States may submit requests to ESFAppeal@ed.gov. 

Liquidation Extension Resources

Office of Communications and Outreach (OCO)
Page Last Reviewed:
June 27, 2025