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U.S. Department of Education rescinds ESSER liquidation extension; Decatur SD 61 faces potential $1.9M shift
Summary
District staff told the board the U.S. Department of Education amended and effectively revoked a previously granted liquidation extension for ESSER/ARP funds, setting the liquidation deadline at March 28, 2025 and creating a possible $1.9 million impact to district funds.
Decatur Public School District 61 administrators told the board that the U.S. Department of Education modified a previously granted liquidation extension for American Rescue Plan (ESSER) funds, potentially forcing the district to move approximately $1,900,000 into its general fund.
Dr. Curry, a district administrator, told the board that the department sent a letter dated March 28, 2025, notifying the district and other recipients that the period to liquidate obligations under the Education Stabilization Fund had been amended to end March 28, 2025. The letter, Dr. Curry said, stated that the Department of Education had reconsidered earlier discretionary approvals and concluded the extension was no longer warranted.
Dr. Curry told the board, “the revocation of this waiver could result and likely will result in the district having to shift $1,900,000 into the general fund.” He said the district had acted in good faith after the waiver was originally approved and that several large projects were delayed by weather and logistics rather than inaction.
District staff explained possible next steps: depending on fund-balance positions, obligated amounts could be shifted from Fund 60 or Fund 10, and the district would likely need to present an amended budget in May if funds are moved out of Fund 10. Dr. Curry said the state of Illinois (through ISBE) indicated it may try to negotiate an extension on behalf of the districts affected; the district is prepared to submit paperwork if the state does not act.
The board asked about legal or lobbying options; Dr. Curry said the district had not yet reached out to its federal legislative delegation but was ready to do so and that the Illinois State Board of Education may pursue a collective petition. No formal board vote was taken on the item during the meeting.
Ending: The district said it will monitor the state’s effort to seek an extension, remain ready to submit documentation, and likely present a budget amendment in May if federal guidance does not change.
