Treasury Department Clarifies Use of COVID-19 Stimulus Funds for Schools

This week, the U.S. Treasury Department published new guidance on the use of the American Rescue Plan’s $350 billion in State and Local Fiscal Recovery Funds (SLFRF) program. According to the Department, state and local governments can tap into this fund to pay for teachers’ salaries and benefits, build out school infrastructure, provide child care programs, and more. Schools can avail of these resources in addition to the American Rescue Plan funds given to them through the Elementary and Secondary School Emergency Relief Fund, allowing for extra financial resources for schools in need. The uses of the SLFRF include “[responding] to the far-reaching public health and negative economic impacts of the pandemic… [providing] premium pay for essential workers… [and investing] in water, sewer, and broadband infrastructure.” These guidelines allow for a broad use of funds to cover the extra expenses schools incur in maintaining staff and operations, such as paying for child care subsidies, new construction at Title I schools, and training potential workers. However, recipients of the money must obligate funds by the end of 2024 and must spend the money by the end of 2026.

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