ED Announces Policy Shift in Dispersing Late COVID-relief Dollars

Yesterday, the Department of Education announced that going forward states will need to pay first for any activities covered by COVID-relief funding and then ask the Department for reimbursement. Previously, “states could draw down on existing awards to pay for approved services without proof that the funds were used for authorized services,” according to the press release.

AASA anticipates the immediate impact of this policy shift will be on LEAs that are seeking late liquidation flexibility for their ARP funds. We are unsure how this will affect other funding streams where LEAs need reimbursement from states. It is also unclear if it will influence states' willingness or ability to reimburse districts, as not all states can advance funds to LEAs without being certain of federal reimbursement.