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COVID-19 Stimulus Law Allots $13.5 Billion to Public Schools

K-12 Education K-12 Education

Today, the President signed a $2 trillion stimulus package into law to help industries impacted by coronavirus disease 2019 (COVID-19). The package includes a $30 billion Education Stabilization Fund for K-12 school districts and institutions of higher education. What funds can your school district expect to receive?

$13.5 billion is available to states through formula-grants, based on the proportion each state receives under Title I, Part A of the Elementary and Secondary Education Act (ESEA), which assists local educational agencies (LEAs) and schools with high numbers or high percentages of children from low-income families.  Of those available funds, 90% will be distributed by states to local school districts based on amounts the school district received under Title I, Part A of the ESEA in the most recent fiscal year. Accordingly, schools that are not eligible for Title I funds will not be eligible for the majority of funds available.

$3 billion of the Education Stabilization Fund, however, will be allocated to state governors for emergency support grants to schools and support to any schools or education related entity that the Governor deems essential for carrying out certain emergency educational services to students. Exactly how much of these funds will be allotted to Illinois schools remains to be seen.

Importantly, the Act requires that any school district, state, institution of higher education, or other entity that receives funds under the Education Stabilization Fund must, to the greatest extent practicable, continue to pay its employees and contractors during the period of any disruptions or closures related to COVID-19.

For questions related to these funds and how they can be used, contact the authors of this alert or any other Franczek attorney.