Legislative Affairs

  • 1.  ESSER Spend Deadline News: USED Announces Late Liquidation Flexibility

    Posted 05-18-2022 10:33

    In response to the collective advocacy efforts of AASA, ASBO International, and other national education organizations asking the US Department of Education (USED) to extend the spend timeline for ESSER funds, we have some exciting news to share.

    On Friday May 13, USED sent a letter responding to our request indicating that while they cannot change the obligation deadline for ESSER funds, they can and will allow flexibility for liquidating funds beyond the programs' original deadlines. (Read AASA's blog for more information.)

    Original Deadlines (including Tydings Amendment):
    ESSER I – Funds must be obligated by September 2022
    ESSER II – Funds must be obligated by September 2023
    ESSER III – Funds must be obligated by September 2024
    *All funds must be liquidated within 4 months (120 days) after the obligation deadlines

    New Deadlines, per USED's May 13 Late Liquidation letter:
    ESSER I – Funds must be obligated by September 2022
    ESSER II – Funds must be obligated by September 2023
    ESSER III – Funds must be obligated by September 2024
    *Districts can work with their state to apply to USED for a "late liquidation" extension, that if approved by USED, can provide districts 18 months after the obligation deadlines (or more if there are extenuating circumstances) to liquidate funds. 

    USED indicated in an Education Week interview that when the agency is considering applications to extend ESSER liquidation deadlines, it will "prioritize school construction projects" first, and any other applications for other spending purposes "would be considered only for extenuating circumstances."

    If a district/state application can demonstrate extenuating circumstances, and their application is approved by the state and USED, it is possible that the late liquidation flexibility can be applied to other contracts with third-party providers such as tutoring, mental health support, curriculum materials, professional development, technology tools, substitute teachers, etc. While contracts must be signed and funds obligated by their original ESSER deadlines, there is some limited flexibility to spend down/liquidate funds over a longer time.

    USED will provide more information on how districts and states can apply for the flexibility, but this announcement may be reassuring for districts that are debating whether to carry out facility projects specifically, because of spend deadline concerns. (Read this W/A analysis for several things to consider about the limitations of this flexibility.)

    ASBO International hopes that this flexibility will help districts spend more sustainably to address immediate and longer-term student needs; and allow districts more time to carry out HVAC/facility projects as they deal with supply chain issues, project delays, and high competition for contractors. We are very grateful to USED for working with states and districts on ESSER spending challenges and appreciate any flexibility they can provide within their scope of authority.

    We encourage members who are interested in exploring this opportunity for their districts to start engaging in conversations with their state, vendors/contractors, and auditors to ensure all parties are aware of this announcement and any circumstances in which a district can take advantage of this flexibility when procuring good/services or carrying out projects beyond the original ESSER spend deadlines.



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    ASBO USA
    asbousa@asbointl.org
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  • 2.  RE: ESSER Spend Deadline News: USED Announces Late Liquidation Flexibility

    Posted 10-03-2022 09:53
      |   view attached
    Last week, the U.S. Department of Education released a letter with guidance (attached) on how to request a late liquidation extension for spending CARES Act funds (e.g., ESSER I and GEER I). The letter states that under 2 CFR § 200.344(b), properly obligated funds would typically need to be liquidated within 120 calendar days (or by January 28, 2023, for CARES Act funds). However, USED has the authority to approve liquidation extension requests for properly obligated funds upon review of a written request made by a grantee (SEA/state) on its own behalf or on behalf of its subgrantees (districts/LEAs). Final approval of a state's written request will be based upon the specific facts and circumstances, and if approved, the state and district(s) may get a liquidation extension of up to 14 months beyond the 120 days (that is typically available) to spend funds.

    Districts seeking to work with their state to get a liquidation extension from USED should reach out to their state agency at state.OESE@ed.gov and are encouraged to submit their request to USED before December 31, 2022, however requests submitted after that point will still be reviewed.

    Please note this only applies to CARES/ESSER I & GEER I funds only. We are still waiting for guidance for CRRSA/ESSER II and ARPA/ESSER III funds, which have not been made available yet. For more information on this announcement, read this K-12 Dive article.

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    ASBO USA
    asbousa@asbointl.org
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  • 3.  RE: ESSER Spend Deadline News: USED Announces Late Liquidation Flexibility

    Posted 05-15-2023 08:35
    Edited by ASBO USA 05-15-2023 08:35

    The U.S. Department of Education recently announced late liquidation flexibility for CRRSAA programs, including ESSER II, GEER II, and EANS funds. 

    Districts that are interested in applying for late liquidation for ESSER II funds should check out this updated fact sheet and application template, and work with their state to apply for this flexibility. (Please note that the SEA must apply on the LEA's behalf to USED for this flexibility. For additional information, please contact your program officer through your State mailbox at Statename.oese@ed.gov.) Districts would still have to obligate funds by September 30, 2023, but can have additional time - up to 14 months - to liquidate funds if approved through this application process.

    We are still awaiting updates on whether any flexibility will be allowed for ARP/ESSER III funds and what that process will look like. As we learn more details, we will share information on this thread.



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    ASBO USA
    asbousa@asbointl.org
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  • 4.  RE: ESSER Spend Deadline News: USED Announces Late Liquidation Flexibility

    Posted 09-19-2023 11:59

    Yesterday, the U.S. Department of Education (USED) announced that late liquidation flexibility will be made available for American Rescue Plan (ARP) ESSER III funds, as it has for CARES and CRRSAA (ESSER I and II funds).

    Please read the letter including USED's announcement here. A request template and updated FAQ document about ARP ESSER late liquidation will be made available this fall.

    The letter notes that late liquidation extension requests must continue to be made by the state on behalf of the district. If approved under this process, an extension may be granted to the liquidation timeline of up to 14 months beyond the 120 days already granted under statute.

    In addition to submitting the late liquidation request, USED will also ask for an explanation about how the extension "contributes to the acceleration of academic success for students and how continuing these investments may extend or expand on a continued path of academic recovery." (This extra ask was not required for ESSER I or II late liquidation requests.) For more information, read AASA's blog about some of the remaining questions and concerns we have regarding the ESSER III late liquidation application process. 

    ASBO International is very grateful for USED announcing that this flexibility will be available to districts, and is providing a year's notice to help support local budgeting and planning before ESSER III's obligation deadline on September 30, 2024. We thank our members for joining us and AASA in advocating to extend the liquidation timeline; we will continue engaging the Department on this topic as questions arise from the field. If you have any questions, please don't hesitate to contact us at asbousa@asbointl.org.



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    ASBO USA
    asbousa@asbointl.org
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  • 5.  RE: ESSER Spend Deadline News: USED Announces Late Liquidation Flexibility

    Posted 01-31-2024 11:16

    ASBO International has been working closely with AASA, The School Superintendents Association to advocate for extending the spend timeline for ARP ESSER III funds. We are pleased to share that the U.S. Department of Education (USED) recently announced the release of an application template and FAQs document for districts/states to apply for ARP ESSER III late liquidation. *School business professionals may want to bookmark this USED webpage, which includes these resources and other ESSER guidance (see under the "Announcements ESSER" section).

    Districts can work with their state agencies to request up to an additional 14 months to liquidate ESSER III funds beyond the statutory January 2025 liquidation deadline, however all funds must still be obligated (i.e., committed) by September 30, 2024. Please note that late liquidation extension requests continue to be allowed only for third-party contracts (not services/labor provided in-house), similar to CARES/ESSER I and CRRSA/ESSER II late liquidation requirements. AASA's blog highlights how this flexibility may apply to things like a tutoring contract with a third-party vendor or mental health services offered by a third-party provider (as opposed to district employees providing these services). If your district is interested in applying for late liquidation, we encourage you to start the conversation with your state agency as early as possible to inform your discussions with contractors/vendors as you renegotiate program or service term length, costs, and other factors. 

    If you have any questions, please don't hesitate to contact us at asbousa@asbointl.org



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    ASBO USA
    asbousa@asbointl.org
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