Fiscal Responsibility Act of 2023 and COVID-19 Relief Funds

On Friday, June 2, President Biden signed the bipartisan budget agreement which suspended the Federal debt ceiling. The Fiscal Responsibility Act of 2023 does not impact formula-driven COVID-19 relief funds awarded under the Elementary and Secondary School Emergency Relief (ESSER) program, the Emergency Assistance to Non-Public Schools (EANS) program, the Governor’s Emergency Education Relief (GEER) program, or the American Rescue Plan Elementary and Secondary School Emergency Relief – Homeless Children and Youth (ARP-HCY) program.

The Department of Education confirmed yesterday that COVID-19 relief funds will not be impacted or "clawed back" from schools. While the Fiscal Responsibility Act of 2023 rescinds certain unobligated COVID-19 relief aid, the Department of Education has already fully obligated ESSER, EANS, GEER, and ARP-HCY funds to States. The rescissions do implicate a small amount of other ARP funds that the Department has not yet obligated, including certain funding for the Institute of Education Sciences. The Department is working to implement these reductions in a way that maintains as much support as possible to their grantees.