Fiscal Cliff or Soft Landing? Exploring District Responses to Expiring COVID-19 Relief Funds

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Abstract

The expiration of federal Elementary and Secondary School Emergency Relief (ESSER) funds raised concerns about a looming “fiscal cliff” for U.S. K-12 districts. This study explores Michigan districts’ perceptions of and responses to the ESSER funding sunset. Drawing on survey responses from 78 districts and interviews with district leaders and the Michigan Department of Education, findings show most districts reported financial readiness; however, ESSER significantly shaped spending decisions, and its end prompted cost-cutting measures and anticipated austerity. Strategies to sustain investments included strategic planning, leveraging partnerships, and securing alternative funds. Policy recommendations address district, state, and federal actions to mitigate future funding cliffs and support educational stability.

Authors

• Bryan Beverly, Michigan State University

• Tyler Thur, Michigan State University

• Jacqueline Gardner, Michigan State University

• Abigail Bies, Michigan State University