ED Updates ESSER, GEER Frequently Asked Questions
The Department of Education (ED) recently provided answers to 27 new questions and updated its responses to eight previous questions in the latest version of its Elementary and Secondary School Emergency Relief (ESSER) and Governor’s Emergency Education Relief (GEER) Frequently Asked Questions (FAQ) document. The December 2022 FAQ version amends guidance ED issued in May 2021.
Both programs were established to respond to the impact of the COVID-19 pandemic on students in pre-K–12 education. ESSER awarded grants to state educational agencies (SEAs) to provide local educational agencies (LEAs) with emergency relief funds to address the pandemic’s impact on elementary and secondary schools. The GEER program awarded grants to governors for the purpose of providing LEAs, institutions of higher education and other education-related entities with emergency support as a result of the pandemic.
Funding under the programs was provided through various COVID-19 relief packages. The Coronavirus Aid, Relief, and Economic Security (CARES) Act (Pub. L. 116-136) provided funding knowns as ESSER I and GEER I, while the Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act (Pub. L. 116-260) provided ESSER II and GEER II funds. The American Rescue Plan Act (Pub. L. 117-2) provided ARP ESSER funds.
Under two updated questions, ED clarifies the timeline for liquidating ESSER/GEER funds. Governors, SEAs and LEAs had until Sept. 30, 2022, to obligate ESSER I and GEER I funds, although grant activities carried out through a valid obligation of funds may continue beyond that date. Under uniform guidance provisions at §200.344(a), ESSER I and GEER I funds must be liquidated within 120 calendar days of the end of the performance period. ESSER II and GEER II funds must be obligated by Sept. 30, 2023. Again, although funds must be obligated by that date, grant activities carried out through a valid obligation of funds may continue for 120 calendar days afterwards. An SEA or LEA has until Sept. 30, 2024, to obligate ARP ESSER funds.
Equipment, Supplies
ED provided extensive guidance under a new question asking about which disposition rules states and LEAs must follow for equipment and supplies purchased with funds under the ESSER and GEER programs. The agency states the uniform guidance definitions for “equipment” and “supplies” (§200.1) apply under these programs. Equipment and supplies purchased with ESSER or GEER funds may be used by states or LEAs for these programs’ authorized purposes during the period of performance, or until the equipment and supplies are no longer needed for the purposes of these programs (§§200.313(a)(1), (c)(1) and 200.314(a)).
If the equipment or supplies are no longer needed for these programs, a state or LEA may continue to use the equipment and supplies to the extent they are needed for allowable purposes under another federal education program in which the state or LEA participates. The state or LEA may then use the equipment or supplies for a federal program of another federal awarding agency (§§200.313(c), 200.314(a)).
If the equipment or supplies are no longer needed under these programs or for any of the state’s other federal programs, the state must dispose of the equipment in accordance with state laws and procedures (§200.313(b)). For LEAs that no longer need the equipment or supplies, and where the equipment has a current per unit fair market value of $5,000 or less, such items may be retained, sold or otherwise disposed of without additional responsibility to ED. If the equipment has a value of more than $5,000, an LEA may retain or sell the equipment, and ED is entitled to an amount calculated by multiplying the current fair market value or proceeds from the sale by ED’s share or proportion of the cost of the original purchase (§200.313(e)).
Ownership of supplies that cost less than $5,000 per unit vest in the state or LEA upon acquisition. If there is a residual inventory of supplies that are not needed and the unneeded supplies exceed $5,000 in total aggregate value, the state or LEA may retain or sell the supplies but, in either case, must compensate ED for its share. The compensation amount must be computed in the manner required for equipment under provisions at §200.313(e)(2). The aggregate value of unneeded supplies is their fair market value at the time of disposition. “A state or LEA must make a good faith effort to sell unneeded supplies purchased with ESSER or GEER funds … and document its efforts,” the FAQ explains. “If a state or LEA cannot find a buyer and cannot use the supplies itself, the state or LEA has no further obligation” to ED.
Capital Expenditures
The revised FAQ also includes responses to questions related to capital expenditures. For an updated question asking whether ESSER and GEER funds can be used for construction, ED explains that new construction is an allowable use, as well as remodeling, alterations, renovations and repairs under which many activities related to COVID-19 would likely fall. However, ED “strongly discourages” LEAs from using ESSER or GEER funds for new construction because it may limit an LEA’s ability to support other essential needs or initiatives. “Extensive remodeling, renovation and new construction are often time-consuming, which may not be workable under the shorter timelines associated with ESSER and GEER funds,” the agency adds. “These types of activities are also subject to a number of additional federal requirements. The burden remains on grantees and subgrantees to maintain the appropriate documentation that supports the expenditure.”
If ESSER or GEER funds are used for construction, grantees and subgrantees should also be aware, the FAQ notes, that real property and equipment acquired or improved under a federal award must be appropriately insured, and grantees must consult with ED on disposition instructions in the event that the property or equipment is no longer needed.
One new question asks whether a state can determine the process for granting prior approval to an LEA to use ESSER or GEER funds for capital expenditures. ED responds in the affirmative to this question, noting that capital expenditure projects require prior written approval by the SEA or governor (§200.439(b)). Neither ED nor the uniform guidance specifies an SEA process for granting prior approval to an LEA to use ESSER funds for capital expenditures such as minor remodeling or construction. Therefore, an SEA has the flexibility to establish its own “reasonable and expeditious process” that ensures expenditures meet applicable statutory and regulatory requirements, including those in subpart E of the uniform guidance.
A second new question asks what information ED needs to consider a state’s prior approval request for state capital expenditures. ED reiterates that the state (i.e., SEA or governor), as the pass-through agency, is responsible for granting prior approval to subgrantees for capital expenditures. However, if a state is using ESSER or GEER funds reserved at the state level for a capital expenditure, it must seek prior approval from ED for its expenditures. Such a request should include detailed information on the project or capital equipment purchase; how the project or purchase will prevent, prepare for or respond to COVID-19; a timeline for the project; and a budget. A state must obtain prior approval of the final working drawings and specifications from ED before a construction project is advertised or placed on the market for bidding
A third related question asks whether a grantee/subgrantee is required to complete an environmental impact assessment under 34 C.F.R. §75.601 and the National Environmental Policy Act (NEPA) (see ¶552 in the Federal Grants Management Module) for a construction, renovation or real property project supported by ESSER or GEER funds. The FAQ says that ED does not exercise control over the use of the funds for any individual project as long as the project continues to meet all statutory and other applicable requirements. As a result, construction, renovation or real property projects supported by ESSER or GEER grants are not considered a major federal action under NEPA and are not subject to 34 C.F.R. §75.601.
However, ED strongly encourages grantees to require some type of environmental assessment for projects that involve breaking new ground, such as projects to expand the size of an existing building or to replace an outdated building. “This may already be required by state law and would help to assess any potential environmental ramifications of expanding or replacing school facilities and ensuring compliance with local or other environmental requirements,” according to the agency.
Among other new questions the updated FAQ includes are those related to the use of ESSER and GEER funds to support multilingual learners; whether these funds may be used to provide incentive payments directly to parents and students to encourage students to attend school; and whether they may be leveraged with funding and initiatives from other federal agencies to promote education workforce stability. The updated version also includes a new Appendix B, which contains other related FAQs on topics that affect ESSER and GEER funds.
For More Information
The FAQ is available at https://oese.ed.gov/files/2022/12/ESSER-and-GEER-Use-of-Funds-FAQs-December-7-2022-Update.pdf.
