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For districts and charters, U.S. Department of Education updates guidance on remaining COVID-19 funding

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Paid for with federal dollars for COVID-19, a new HVAC at Hot Springs Elementary in Madison County, NC. Mebane Rash/EdNC

The U.S. Department of Education updated guidance on remaining COVID-19 funding on Wednesday night.

An email from the department received by EdNC says:

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.   

Here is the memo sent by Denise Carter, acting secretary of the U.S. Department of Education.

North Carolina districts and charters have largely spent down the $6.2 billion in federal funding, though this guidance could impact cashflow for dollars that are “encumbered,” which means committed but unspent, as well as whether remaining expenses align with the new administration’s “authorized purposes.”

Here you can see for all school districts and charter schools the percent of funding across North Carolina. Under select a public school unit, you can select a charter school to see the data.

This data is current as of Dec. 31, 2024. In total, just over $25 million could be impacted.