With the deadline looming, Michigan schools have nearly exhausted billions in federal pandemic relief aid, a lifeline meant to address the fallout from COVID-19. But as the clock ticks down, many wonder: how much of that money is actually left, and where has it been spent?
Let’s break it down.
How Much COVID Relief Money is Left for Michigan Schools?
The short answer: not much.
According to the Michigan Department of Education, schools received $5.6 billion in federal pandemic aid across multiple rounds of funding. But with less than two weeks to go before the deadline, most of that money has been allocated. As of now, only around $300 million remains unspent from the third and final round of funding, known as ESSER III.
However, this $300 million figure is somewhat misleading. Kevin Walters, who oversees grants and contracts with the Michigan Department of Education, noted that much of this money is already committed to various projects or initiatives. It’s simply waiting to be drawn down by the school districts.
Over half of Michigan’s districts have already exhausted their funds, leaving no budget left to spend.
Where Did the Money Go?
So, where exactly did Michigan schools spend these billions?
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Staff Salaries and Benefits: The majority of the relief money—about 50%—went directly toward staffing costs. This includes both retaining existing staff and hiring new teachers to address key areas like remedial instruction. Incentivising staff to stay at their schools, particularly during a period of widespread teacher shortages, was another critical use of these funds.
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Learning Loss Initiatives: Nearly 58% of the funds from the third round were dedicated to combating learning loss. This was a direct response to the federal mandate that at least 20% of the aid must be spent on efforts to address the educational gaps created by the pandemic. Schools allocated these resources toward targeted instruction, tutoring programs, and academic intervention, aiming to help students who had fallen behind due to the shift to virtual learning.
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Capital Projects and Building Improvements: Around 6% of the relief money was used for capital improvements—upgrading school infrastructure to make it safer and more conducive to learning in a pandemic world. Many schools focused on improving air quality systems and upgrading facilities to adhere to new safety standards.
Walters expressed pride in how these funds were used, particularly in addressing learning loss, stating: “We know that districts spent these funds wisely, providing instruction and directly tackling the learning loss we saw during the pandemic.”
The Timeline: Why the Rush to Spend?
Schools have faced intense pressure to spend these funds before the deadline. The pandemic relief money came in several waves, with the ESSER III funds being the last and largest batch. These funds had to be used by a specific deadline, and now that time is nearly up.
Given the significant sums involved, schools needed to make quick decisions on how to best allocate their funds. With the federal aid deadline approaching, many districts scrambled to finalise their spending plans, leaving little margin for error.
For schools that still have money left in their budget, most of it is already earmarked for specific projects or programmes. Walters reiterated that the funds are largely tied up, meaning schools have made commitments to spend them but may not have drawn the funds down yet.
How Did Schools Decide Where to Spend?
When the federal funds became available, districts were faced with some tough decisions. Many had to prioritise where to spend, balancing immediate needs with long-term goals. According to state reports, schools focused heavily on staff retention and learning recovery programmes—both areas seen as critical to reversing the damage done by extended school closures and remote learning.
One major area of focus was making sure students didn’t fall further behind. Schools ramped up tutoring services, brought on additional teachers, and even invested in educational technology to ensure kids could keep up in this rapidly changing environment. But not every district had the same needs. For some, improving outdated school buildings or air filtration systems was an essential part of preparing for a post-pandemic world.
Challenges in Spending the Funds
While most of the money has been allocated, spending it wisely hasn’t been easy.
Many schools struggled with the logistical challenges of hiring qualified staff during a time of severe teacher shortages. Others faced issues securing contractors for building projects, as the construction industry was also hit hard by pandemic-related disruptions.
Additionally, some schools found themselves overwhelmed by the sheer volume of federal regulations tied to the spending of relief funds. The money came with strings attached, and schools had to follow strict guidelines to ensure that funds were used appropriately. This led to delays in certain projects, particularly those involving infrastructure improvements.
What Happens Next?
With the final federal aid deadline just around the corner, most schools have spent nearly every penny. But the effects of that spending will be felt for years to come.
The question moving forward is how schools will manage their finances once this influx of federal money is gone. With many districts already facing tight budgets, the absence of further pandemic aid could pose significant challenges. Schools may need to find new ways to continue the progress they’ve made in areas like learning recovery and infrastructure improvements without the same level of financial support.
In the short term, however, the focus remains on making sure every dollar is spent wisely and in time. Walters stressed that the remaining funds are already “committed to projects” and that districts will ensure they meet the deadline.
Conclusion
The billions in pandemic relief funds have helped Michigan schools address a wide range of challenges—from learning loss to teacher shortages to infrastructure improvements. As the deadline approaches, schools have done a commendable job in spending nearly all of their allocated funds. While around $300 million technically remains, the reality is that most of this money is already earmarked for specific projects.
This rapid spending has been essential in keeping schools afloat during a turbulent time, but as the relief funds run dry, the challenge will be sustaining these improvements in the future. For now, Michigan’s schools can be proud of how they’ve used this once-in-a-lifetime financial lifeline to support their students and communities.
