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Department says ESSER liquidation extensions are wrapping up; some funds reverted to federal government
Summary
Megan Peterson told the subcommittee that ESSER grants are ending, that the department received liquidation approval for portions of ESSER 2 and ESSER 3 through early 2026, and that approx. $1.8 million in ESSER 2 authority could not be extended and reverted to the federal government.
Deputy Superintendent Megan Peterson told the joint subcommittee that budget account 2710 — the COVID‑19 fund account that housed ESSER 1, 2 and 3 funds — is winding down after multiple obligations and some late liquidation approvals.
Peterson said ESSER 1 and ESSER 2 projects have largely ended, ESSER 3 projects have been extended for liquidation, and the department had permission to finish eligible projects into calendar year 2026 with final payments by March 2026. "We did receive late liquidation approval for both our ESSER 2, Gear 2, and ESSER 3 funds," Peterson said. She also said timing and reversions led to some funds being returned: "Those funds were reverted to the federal government," she said, describing approximately $1.8 million in ESSER 2 authority that could not be extended and therefore reverted.
How funds were used at the local level
Peterson summarized ESSER III priorities at the local education agency level: after the initial emergency phases (PPE and immediate needs) ESSER III supported activities to address learning loss, stabilize operations and fund required minimums such as summer and after‑school programming. Lawmakers asked for a statewide accounting; Superintendent Joan Ebert reminded the committee that the department maintains a transparency website showing reimbursements and district expenditures.
What lawmakers asked
Senators asked how much of ESSER III was approved to be liquidated beyond Sept. 30, 2024; Peterson said the department could provide final numbers but indicated roughly $34 million was approved for liquidation beyond that deadline. Lawmakers also asked how much might revert at the end of the liquidation period; Peterson said those figures were still being reconciled with districts.
Ending note
The department said it would provide the committee updated liquidation totals and district‑level reimbursement records; lawmakers said they expect final reconciliations before concluding ESSER‑related budget matters.
