How the CARES Act Allocates $30.75 Billion for Education

By Charles Sosnik

The Coronavirus Aid, Relief, and Economic Security (CARES) Act includes a significant education package: roughly $30.75 billion in emergency funding intended to support K–12 schools, higher education institutions, and other education-related needs during the COVID-19 pandemic. Because much of this funding is flexible, it can be used across a broad range of programs and purposes to help educators, students, and families cope with the disruption caused by the public health crisis.

The Funding Breakdown

• $13 billion allocated to K–12 state education agencies
• $14 billion designated for institutions of higher education
• $3 billion made available to governors for distribution to K–12, higher education, and other education-related programs
• $600 million set aside for states with the highest coronavirus burden, the Bureau of Indian Education, and U.S. outlying areas

Individual state and district awards are determined largely by existing Title I funding formulas. Each state that receives funds must pass at least 90 percent of its allocation through to local school districts, ensuring the bulk of these emergency dollars reach schools and students directly.

Permissible Uses of the Funds

The CARES Act grants significant flexibility, allowing states and districts to use funds for activities authorized under several federal education laws, including but not limited to:

• Every Student Succeeds Act (ESSA)
• Individuals with Disabilities Education Act (IDEA)
• Carl D. Perkins Career and Technical Education Act
• McKinney-Vento Education for Homeless Children and Youth
• Native Hawaiian Education Act and the Alaska Native Educational Equity, Support, and Assistance Act
• Adult Education and Family Literacy Act

Beyond these statutory authorizations, the statute explicitly allows funds to be used for activities that respond to the pandemic’s immediate health and learning needs. Examples include coordinating with public health departments; addressing the needs of students from low-income families, students with disabilities, English learners, racial and ethnic minorities, students experiencing homelessness, and youth in foster care; purchasing educational technology (hardware, software, connectivity, assistive and adaptive technology); and maintaining continuity of services, including retaining existing staff.

The Caveat: Maintenance of Effort and Waivers

To receive their portion of CARES Act education funds, states must generally guarantee that they will maintain funding for K–12 and higher education at levels at least equal to the average of the three prior fiscal years. However, the U.S. Secretary of Education may waive this maintenance-of-effort requirement for states that experience a “precipitous decline” in financial resources. Given the economic downturn and sharp increases in unemployment and related declines in state tax revenues, many states are likely to qualify for such waivers.

Cutting Through the Red Tape: ESSA Waivers and Expedited Processes

The Department of Education established an expedited review process for certain ESSA-related waiver requests. The Secretary is required to review and approve or deny these waiver requests within a 30-day window, and waivers granted under this process apply to the 2019–2020 school year. Policies that may be waived through the expedited procedure include annual state testing requirements (guidance for this waiver has already been circulated), state accountability and reporting related to testing and accountability, some maintenance-of-effort requirements for districts, limits on Title I carryover funds, and certain restrictions in the Student Support and Academic Enrichment (Title IV-A) program—such as specific spending percentages and the 15 percent cap related to technology purchases.

Equity and the Challenge of Digital Access

One of the most urgent questions remains how to ensure every child who lacks reliable home internet access can obtain it. The pivot to remote instruction exposed stark gaps in digital equity: without widespread access to devices, broadband, and technical support, remote learning plans will not succeed. State and district leaders must prioritize connectivity and devices alongside curriculum and teacher support so that emergency investments produce meaningful learning opportunities for all students.

Much of the practical guidance summarized here was made clearer thanks to analysis from the Alliance for Excellent Education and was discussed at a recent Education Writers Association (EWA) online event. I also received helpful context from Kelsea Kierstead at C Blohm & Associates.

About the author

Charles Sosnik is an education journalist and editor who serves as Editor in Chief at the Learning Counsel. An EP3 Education Fellow, he draws on long-standing connections in the education community to add context to coverage of policy and practice. Charles regularly contributes to influential education media, including the Learning Counsel, EdNews Daily, EdTech Digest, and edCircuit. He describes himself as an editor by trade and Southern by the grace of God.