Liquidation Letter

United States Department of Education

office of elementary and secondary education

S eptember XX, 2022

84.425C Grantees

84.425D Grantees

Dear Grantee,

Thank you for the work you are doing every day to address the impact of the COVID-19 pandemic and help your schools and students recover. The Elementary and Secondary School Emergency Relief (ESSER) and Governor’s Emergency Education Relief (GEER) funds are vital tools in this effort. As of today, over 96 percent of Coronavirus Aid, Relief, and Economic Security (CARES) Act funding has been spent to help safely reopen schools and address the needs of our students. It is critically important that States and local educational agencies continue to prioritize using emergency relief funds for effective, evidence-based strategies to operate schools safely, accelerate academic achievement, support students’ mental health needs, and strengthen our educator workforce.

The Department acknowledges that some grantees may require flexibility liquidating remaining ESSER and GEER funds under the CARES Act that are properly obligated by the September 30 deadline. Accordingly, the Department is offering a liquidation extension request process for immediate use by grantees. This process ensures strong accountability for the use of funds and important safeguards for States and subgrantees. Under 2 CFR § 200.344(b), properly obligated funds must be liquidated within 120 calendar days (or by January 28, 2023, for CARES Act funds). The Department has the authority to approve liquidation extension requests for properly obligated funds upon review of a written request made by a grantee on its own behalf or on behalf of its subgrantees. Final approval of a grantee’s written request will be based upon the specific facts and circumstances, in accordance with 2 CFR § 200.344(b). If approved under this process, grantees and subgrantees may have an extension to the liquidation period of up to 14 months beyond the 120 days already available to liquidate funds.

To request late liquidation of CARES Act funds, grantees must submit an extension request to the Department’s Office of State and Grantee Relations (SGR) on their own behalf or on behalf of their subgrantees. A grantee requesting a liquidation extension for its subgrantees must assure that it will continue to conduct oversight of the subgrantees, attest to the allowability of the expenses to be liquidated, maintain documentation to support the expenditures’ timely obligation, and attest that included subgrantees are low-risk entities. Grantees, at their discretion, may use their oversight authority to collect any additional information and documentation they deem necessary to support the liquidation extension request and ensure proper oversight of subgrantees. To streamline the process for States, and provide an efficient mechanism for internal review, grantees must submit the information required for the liquidation extension request to their State mailbox ([email protected]). Review and approval will be based on a complete request, including associated subgrantee data. Grantees should submit a liquidation extension request prior to December 31, 2022, to minimize disruption when accessing CARES Act funds through the Department’s Grants Management System (G5). However, requests submitted after this date will also be reviewed.

The Department’s liquidation extension process for ESSER and GEER funds under the CARES Act is designed to provide flexibility for States and subgrantees to address critical, ongoing challenges in a manner that maximizes impact and supports schools in operating safely and addressing the impact of the pandemic on students’ mental health, well-being and academic needs.

We look forward to continuing to work in close partnership with State and local leaders in the response to and recovery from the COVID-19 pandemic.

Sincerely,

James F. Lane, Ed.D.  

Senior Advisor, Office of the Secretary   

Delegated the Authority to Perform the   

Functions and Duties of the Assistant Secretary for  

Elementary and Secondary Education  

400 MARYLAND AVE. SW, WASHINGTON, DC 20202

www.ed.gov

The Department of Education’s mission is to promote student achievement and preparation for global competitiveness by fostering educational excellence and ensuring equal access.