North Carolina awaiting federal approval for use of latest education stimulus funds

Nationwide, 17 state plans have been approved out of 42 submitted, said Michael Maher, North Carolina Department of Public Instruction director of learning recovery. Maher said he expects North Carolina to soon receive conditional approval, requiring updates based on how the state General Assembly decides to appropriate the stimulus funds for schools and any new programs that might be created with those funds.

Public school districts and charter schools have until Sept. 30 to submit plans to DPI on how they intend to use the funds, based on a federally approved state plan.

The funds are the Elementary and Secondary School Emergency Relief Fund III, provided by the American Rescue Plan passed by Congress earlier this year.

North Carolina received $396.3 million from the Coronavirus Aid, Relief and Economic Security Act (CARES Act) last spring, $1.6 billion under the Coronavirus Response and Relief Supplemental Appropriations Act passed in December, and will receive $3.6 billion under the most recent stimulus, the American Rescue Plan.

That North Carolina’s schools are largely funded by the state — a relatively unique arrangement — means the state’s plan is currently too vague for “meaningful” conversation with stakeholders, so long as the General Assembly hasn’t passed a budget for the 2022 fiscal year, Maher said.

DPI submitted its plan to use the ESSER III funds June 21. The federal education department responded July 9 with 10 requests for clarification in the plan. After DPI resubmitted its plan, the federal education department identified two outstanding clarifications necessary before approval.

DPI needed to show that it has consulted with several different groups of people representing students disproportionately adversely affected by the pandemic, the department wrote July 22. DPI has since scheduled meetings with representatives of those student groups, though Maher cautioned that those conversations are limited in potential because of the lack of specificity in the plan.

The U.S. Department of Education also asked the state to establish a date by which public schools must submit their plans for using the stimulus money, rather than a time period. DPI chose Sept. 30.