Maintenance-of-Effort Requirements and Waiver Requests under the Elementary and Secondary School Emergency Relief (ESSER) Fund and the Governor's Emergency Education Relief (GEER) Fund

Guidance on
Maintenance of Effort Requirements and Waiver
Requests under the Elementary and Secondary School
Emergency Relief (ESSER) Fund and the Governor’s
Emergency Education Relief (GEER) Fund

U.S. Department of Education
Washington, D.C. 20202

(Updated pp. 4-5, Appendices A, B, C)

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U.S. Department of Education
Guidance on Maintenance of Effort Requirements and Waiver Requests
The purpose of this guidance is to provide information on the maintenance of effort (MOE) requirements under
the Elementary and Secondary School Emergency Relief (ESSER) Fund and the Governor’s Emergency
Education Relief (GEER) Fund. This guidance document includes the following:
•

•

•
•
•

A chart outlining the main similarities and differences between the MOE requirements in the
Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the Coronavirus Response and
Relief Supplemental Appropriations Act, 2021 (CRRSA Act), and the American Rescue Plan Act of
2021 (ARP Act).
Frequently asked questions about the MOE requirements and the process for States to request an MOE
waiver under section 2004(a) of the ARP Act. The Department’s approach to MOE waiver requests will
be rooted in consideration of the impact on students. The purpose of ARP ESSER, ESSER I, ESSER II,
GEER I, GEER II, and EANS funds is to expand resources for K-12 and postsecondary schools and
students, not to replace existing State commitments to K-12 and postsecondary education.
An MOE worksheet describing how to calculate MOE under the CARES Act, the CRRSA Act, and the
ARP Act.
An MOE data submission form that each State must use to report MOE data for the CARES Act, the
CRRSA Act, and the ARP Act.
An MOE waiver request form that a State must use when requesting a waiver of the MOE requirements.

In the near future, the Department will also release separate guidance on the new State and local educational
agency (LEA) maintenance of equity requirements in section 2004(b) and (c) of the ARP Act.

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OMB Control #: 1810-0745
Expiration Date: XXXX

Comparing the Maintenance of Effort Requirements in the CARES Act, the CRRSA Act,
and the ARP Act 1
This chart outlines the main similarities and differences between the maintenance of effort (MOE) requirements
in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the Coronavirus Response and Relief
Supplemental Appropriations Act, 2021 (CRRSA Act), and the American Rescue Plan Act of 2021 (ARP Act).
The MOE requirements for the CRRSA Act and the ARP Act are included in the same column because the
requirements under the two statutes are the same, except that the ARP Act extends the CRRSA Act
requirements for an additional fiscal year.
Topic

CARES Act (Section 18008)

CRRSA Act (Division M, Section 317) &
ARP Act (Section 2004(a))

Programs
Subject to
MOE

Elementary and Secondary School
Emergency Relief Fund (ESSER),
Governor’s Emergency Education Relief
Fund (GEER).

CRRSA Act: ESSER II, GEER II,
Emergency Assistance to Non-Public
Schools (EANS) program.

A State that receives ESSER or GEER
funds under the CARES Act must:

CRRSA Act: A State that receives ESSER
II, GEER II, or EANS funds under the
CRRSA Act must:

MOE
Requirements

1. Maintain State support for elementary
and secondary education in each of
fiscal years (FYs) 2020 and 2021 at
least at the level of such support that is
the average of State support for
elementary and secondary education
for FYs 2017, 2018, 2019; and
2. Maintain State support for higher
education in each of FYs 2020 and
2021 at least at the level of such
support that is the average of State
support for higher education for FYs
2017, 2018, and 2019.

ARP Act: ARP ESSER. The requirements
do not apply to ARP EANS.

1. Maintain State support for elementary
and secondary education in FY 2022 at
least at the proportional level of the
State’s support for elementary and
secondary education relative to the
State’s overall spending, averaged over
FYs 2017, 2018, and 2019; and
2. Maintain State support for higher
education in FY 2022 at least at the
proportional level of the State’s
support for higher education relative to
the State’s overall spending, averaged
over FYs 2017, 2018, and 2019.

Other than statutory and regulatory requirements included in the document, the contents of this guidance do not have the force and
effect of law and are not meant to bind the public. This document is intended only to provide clarity to grantees regarding existing
requirements under the law or agency policies.

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Topic

CARES Act (Section 18008)

CRRSA Act (Division M, Section 317) &
ARP Act (Section 2004(a))
ARP Act: A State that receives ARP
ESSER funds must meet this MOE
requirement in each of FYs 2022 and
2023.
The CRRSA Act and ARP Act have the
same two MOE baselines:

MOE Baseline The CARES Act has two MOE baselines:
Level
1. Elementary and secondary education
baseline, which averages the dollar
1. Elementary and secondary education
amount of State support for elementary
baseline, which averages the
percentages of total State spending
and secondary education over the
three baseline years.
that are used to support elementary
and secondary education over the
2. Higher education baseline, which
three baseline years.
averages the dollar amount of State
2. Higher education baseline, which
support for higher education over the
averages the percentages of total State
three baseline years.
spending that are used to support
higher education over the three
baseline years.
Baseline years

FYs 2017, 2018, and 2019.

FYs 2017, 2018, and 2019.

MOE years

FY 2020 and FY 2021.

CRRSA Act: FY 2022.
ARP Act: FY 2022 and FY 2023.

How to
Demonstrate
MOE

1. Compare the dollar amount of State
support for elementary and secondary
education for FY 2020 and separately
for FY 2021 to the baseline level on
either an aggregate or per student
basis; and

CRRSA Act:

2. Compare the dollar amount of State
support for higher education for FY
2020 and separately for FY 2021 to the
baseline level on either an aggregate or
full-time-equivalent (FTE) basis.

2. Compare the percentage of total State
spending used to support higher education
in FY 2022 to the baseline percentage.

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1. Compare the percentage of total State
spending used to support elementary and
secondary education in FY 2022 to the
baseline percentage; and

When comparing the FY 2022 percentage
to the baseline percentage, the State, at its
discretion, may round the difference to the
nearest whole number using standard
rounding procedures.

Topic

CARES Act (Section 18008)

CRRSA Act (Division M, Section 317) &
ARP Act (Section 2004(a))

How to
Demonstrate
MOE

State Sources
of MOE data

MOE Data
submission
dates

ARP Act:
Make these comparisons for both FY 2022
and FY 2023 relative to the baseline
percentage.
When comparing the FY 2022 and
FY 2023 percentages to the baseline
percentage, the State, at its discretion, may
round the difference to the nearest whole
number using standard rounding
procedures.
State support data: A State may use
State support data: A State may use
either actual State expenditure data or data either actual State expenditure data or data
representing final appropriated or allocated representing final appropriated or allocated
amounts for both the baseline levels and
amounts for both the baseline levels and
the applicable comparison levels (FY 2020 the comparison levels (FY 2022 for
and FY 2021).
CRRSA Act, and FYs 2022 and 2023 for
ARP Act).
State overall spending data: Not
State overall spending data: A State must
relevant for CARES Act MOE
use data on actual State expenditures to
determination.
demonstrate overall spending, consistent
with the statutory reference to “overall
State spending.” A State may not use final
appropriated or allocated amounts that
differ from actual State expenditures to
demonstrate compliance with the MOE
requirements.
Baseline data: Each State submitted
baseline data by September 1, 2020.

Baseline data: Each State must submit
baseline data by May 17, 2021.

FY 2020 data: Each State submitted FY
2020 data by December 31, 2020. Baseline
data and FY 2020 data may be updated by
a State on or before May 17, 2021.

FY 2022 data: Each State must submit FY
2022 interim data on appropriated or
allocated amounts for State support for
elementary and secondary education, State
support for higher education, and overall
State spending by December 30, 2021.
Each State must submit final expenditure
data for FY 2022 overall State spending in
spring 2023.

FY 2021 data: The Department intends to
collect FY 2021 data by December 30,
2021.

FY 2023 data: Each State must submit FY
2023 interim data on appropriated or
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Topic

CARES Act (Section 18008)

CRRSA Act (Division M, Section 317) &
ARP Act (Section 2004(a))
allocated amounts for State support for
elementary and secondary education, State
support for higher education, and overall
State spending by December 30, 2022.
Each State must submit final expenditure
data for FY 2023 overall State spending in
spring 2024.

1. What is meant by the term “fiscal year” in determining MOE?
For purposes of determining MOE, a State may use either the applicable Federal fiscal year or the applicable
State fiscal year. Fiscal years are denoted by the calendar year in which they end (e.g., the fiscal year that ends
June 30, 2021 would be deemed fiscal year 2021). See chart below for an example of how State and Federal
fiscal years align with particular school years.

FY 2020
FY 2021
FY 2022
FY 2023

Federal fiscal year

State fiscal year (example)

October 1, 2019 - September 30, 2020
October 1, 2020 - September 30, 2021
October 2, 2021 - September 30, 2022
October 2, 2022 - September 30, 2023

July 1, 2019 - June 30, 2020
July 1, 2020 - June 30, 2021
July 1, 2021 - June 30, 2022
July 1, 2022 - June 30, 2023

School
Year
2019-2020
2020-2021
2021-2022
2022-2023

2. How does a State quantify the amount of its support for elementary and secondary education?
The CARES Act, CRRSA Act, and ARP Act do not specify how a State must determine its “support for
elementary and secondary education” for purposes of the MOE requirements, and the Department is not
defining this term through regulation. Rather, in recognition of the variations in education finance data and the
lack of a statutory definition, the Department is providing States with principles that provide flexibility in
quantifying the amount of that support.
In quantifying its support for elementary and secondary education, the data used by a State to determine the
level of support must—
•
•
•

Include funds provided through the primary funding mechanisms through which a State provides
support for elementary and secondary education.
Be consistent from year to year.
Be based on adequate documentation.

In quantifying support for elementary and secondary education, a State may choose to establish its level of
support—
•

Solely on the basis of the amount of funds provided through its primary elementary and secondary
education funding formula(e).
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•

•

By also including categorical and other support that is not provided through the primary funding
formula(e). For example, a State may include data such as funding under State auspices for nonappropriated support (e.g., tobacco settlement funds and lotteries) specifically set aside for current
expenditures for elementary and secondary education and interest or earnings received from State
endowments pledged to elementary and secondary education.
On the basis of data that it provides for other purposes, such as data that it includes as “Revenue from
State Sources” in the annual National Public Education Finance Survey conducted by the National
Center for Education Statistics (NCES).

In quantifying support for elementary and secondary education, the data used by a State to determine the level
of support may not—
• Include support from private donors, such as charitable contributions that individuals make to
elementary and secondary education.
• Include Federal funds.
3. How does a State quantify the amount of its support for higher education?
Although the CARES Act, CRRSA Act, and ARP Act exclude certain data from MOE determinations, they do
not specify how a State must determine its “support for higher education.” Rather, in recognition of the
variations in the types of support for higher education and the lack of a statutory definition, the Department is
providing States with principles that provide flexibility in quantifying the amount of that support.
In quantifying support for higher education, the data used by a State to determine the level of support must—
•
•

•
•
•

Include only State support for higher education. In some States, local governments may provide support
for community colleges or other institutions of higher education (IHEs). Local government contributions
are not considered State support.
Include funds provided by the principal funding mechanisms through which a State provides support to
IHEs. For example, the data would include State appropriations for operational support for institutions
of higher education. A State must consider unrestricted State funding for IHEs to be State support for
such institutions even if those institutions choose to use a portion of that funding for financial assistance
to students. This financial assistance is not considered to be tuition and fees paid by students or direct
State support to students.
Include State need-based financial aid.
Be consistent from year to year.
Be based on adequate documentation that substantiates the levels of support that it has used in making
MOE calculations.

In quantifying support for higher education, the data used by a State to determine the level of support may—
•

•

Include data in addition to that provided in the appropriations enacted by the State legislature for IHEs.
For example, a State may include data such as funding under State auspices for non-appropriated
support (e.g., tobacco settlement funds and lotteries) specifically set aside for higher education and
interest or earnings received from State endowments pledged to IHEs.
Include State appropriations to IHEs for financial assistance programs – both need-based and meritbased) to defray the costs of tuition and fees paid by students (when the appropriated funds flow directly
to the IHEs). The fact that the funds represent student financial aid for other purposes does not preclude
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•

such funds from consideration as State support for higher education in the CARES Act, CRRSA Act, or
ARP Act programs.
Include State appropriations for dual enrollment or early college programs.

In quantifying support for higher education, the data used by a State to determine the level of support may not
include—
•

•
•
3(a).

Support for capital projects, research and development, or tuition and fees paid by students. If a State
provides unrestricted State funding to IHEs and does not make separate appropriations for capital
expenditures or research and development, the State must estimate the amount of capital expenditures
and research and development expenditures to be excluded from the unrestricted funding.
Support from private donors, such as charitable contributions that individuals make to IHEs. This also
includes corporate contributions for IHEs, such as payments that a corporation makes for stadiumnaming rights.
Federal funds, including Higher Education Emergency Relief Funds.
May a State include Coronavirus Relief Funds (CRF) awarded under the CARES Act and
Coronavirus State and Local Fiscal Recovery Funds (SLFRF) awarded under the ARP Act by the
Department of the Treasury that are spent on elementary and secondary education or higher
education as State support for education when determining maintenance of effort under section
18008 of the CARES Act, section 317 of the CRRSA Act, and section 2004(a) of the ARP Act?
(NEW Question February 4, 2022)   

Yes, a State may include both CRF and SLFRF funds, contingent on the limitations summarized below.
SLFRF Funds: A State may include SLFRF funds, up to the State’s calculated amount of COVID-related
losses in revenue, that are spent on elementary and secondary education or higher education, as applicable, as
State support for education to meet the maintenance of effort requirements in section 18008 of the CARES Act,
section 317 of the CRRSA Act, and section 2004(a) of the ARP Act. On January 6, 2022, the U.S. Department
of the Treasury issued a final rule for the SLFRF, which clarified that SLFRF funds, available to be used for
government services up to the State’s amount of lost revenue due to the public health emergency calculated
under section 602(c)(1)(C) of the Social Security Act, may be used towards meeting non-Federal matching
requirements in other Federal programs. Consistent with this final rule, because SLFRF funds available for the
provision of government services are more appropriately identified as revenue sharing available to meet nonFederal matching requirements, the U.S. Department of Education (Department) is allowing States
to include SLFRF funds available for the provision of government services that are spent on elementary and
secondary education or higher education, as applicable, for the purpose of determining State support for
education under the maintenance of effort requirements referenced above.
CRF Funds: The Department has also concluded that States may include CRF funds that are spent on
elementary and secondary education or higher education, as applicable, in determining State support for
education under the maintenance of effort requirements referenced above, consistent with CRF guidance issued
by the Department of the Treasury.
All uses of the CRF and SLFRF, including as State support for education, are subject to the restrictions on use
imposed by sections 601 and 602 of the Social Security Act, respectively, and Treasury’s implementing
guidance and regulations.
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If a State wishes to update its maintenance of effort data or a waiver request previously submitted to the
Department under any of the above provisions, please contact your program officer at [state][email protected].
4. How does a State quantify the amount of “overall spending” for a given fiscal year?
For CRRSA Act and ARP Act MOE requirements, a State must quantify the amount of its overall spending
during the baseline years (i.e., FYs 2017, 2018, and 2019) as well as during the year(s) in which the State must
maintain effort (i.e., FY 2022 for the CRRSA Act and FYs 2022 and 2023 for the ARP Act). A State’s overall
spending in a given year includes not only a State’s actual expenditures on elementary, secondary, and higher
education, but also expenditures on all other activities and services that it supports with State funds (e.g., public
welfare, public health, public safety, and transportation). A State’s overall spending does not include
expenditures of Federal funds or generally funds from restricted sources (e.g., settlement funds, highway funds,
or wildlife funds). A State may not use final appropriated or allocated amounts that differ from actual State
expenditures. Furthermore, a State’s overall spending may differ from its initial appropriated amounts or the
revenues that a State generates each year.
5. Must a State use the same data sources each year to determine State support for elementary and
secondary education, State support for higher education, and overall State spending?
The data a State uses for purposes of the MOE requirements must be consistent from year to year. As a result, a
State must use the same data sources to determine State support for elementary and secondary education and for
higher education across fiscal years. Similarly, a State must use the same data sources in determining overall
State spending for the baseline years and FYs 2022 and 2023.
A State may update previously submitted MOE data and incorporate data from other sources as long as it
continues to use the same data sources across fiscal years. A State may update previously submitted CARES
Act MOE data through May 17, 2021.
6. May the Secretary waive the MOE requirements in the CARES Act, the CRRSA Act, and the ARP
Act?
Yes. Under the waiver authority in section 2004(a)(2) of the ARP Act, the Secretary may waive any MOE
requirements associated with the Education Stabilization Fund (e.g., CARES Act, CRRSA Act, and ARP Act
MOE requirements) for the purpose of relieving fiscal burdens incurred by States in preventing, preparing for,
and responding to the coronavirus. Accordingly, in the context of the factors described below in FAQ 8, this
standard applies to MOE waivers under section 2004(a)(1) of the ARP Act, section 18008(b) of the CARES
Act, and section 317(b) of Division M of the CRRSA Act.
7. What information must a State provide to request an MOE waiver under the CARES Act, the
CRRSA Act, and the ARP Act?
In seeking an MOE waiver, a State must submit:
(a) Data substantiating the levels of State support for elementary and secondary education and for higher
education for any fiscal year for which a waiver is requested;
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(b) Data substantiating the State’s overall spending or data on appropriated or allocated amounts
available for State spending (if a waiver is requested for FY 2022 or 2023);
(c) A description of the extent to which the State experienced fiscal burdens as a result of preventing,
preparing for, and responding to the coronavirus and an explanation of how those fiscal burdens
affected the State’s ability to maintain fiscal effort (e.g., the status of and any changes to the State’s
rainy day fund, whether the State experienced a decline in revenues, or an increase in other
emergency expenses resulting from the pandemic, such as expenses related to health care,
unemployment insurance, or support for small businesses); and
(d) Documentation and data supporting the description of the State’s fiscal burdens (e.g., revenue data,
appropriation tables, unemployment statistics, etc.) including any State actions that impacted State
revenue (e.g., tax increases or decreases).
In addition, in its waiver request, a State should submit information on the relevant factors listed in FAQ 8 to
support its request. A State must submit the MOE waiver request form (Appendix C) when requesting a
waiver. The Secretary may ask States for additional information after States submit the MOE waiver request
form.
8. What factors might the Secretary consider in deciding whether to grant a State’s MOE waiver
request?
The Department’s approach to MOE waiver requests will be rooted in the consideration of the impact on
students. The purpose of ARP ESSER, ESSER I, ESSER II, GEER I, GEER II, and EANS funds is to expand
resources for K-12 and postsecondary schools and students, not to replace existing State commitments to K-12
and postsecondary education.
As a result, in determining whether to grant a State an MOE waiver, the Secretary may consider factors such as:
Has the State increased support for education?
The Department understands that it is possible that a State has maintained or increased overall funding
for education and the proportion of the State budget for education has still declined because of increases
in other areas of the budget (e.g., public health). In these cases, the Secretary may consider:
•
•
•
•
•

Has total State funding for K-12 education and for higher education (calculated separately) increased
from the prior fiscal year?
Has total State funding for K-12 education and for higher education (calculated separately) increased
over time (e.g., since baseline years)?
Has per-pupil State funding for K-12 education and for higher education (calculated separately)
increased from the prior fiscal year?
Has per-pupil State funding for K-12 education and for higher education (calculated separately)
increased over time (e.g., since baseline years)?
Has the State appropriated an increase in State funding for K-12 education and for higher education
for future fiscal years?

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Are there exceptional circumstances that caused the State to be unable to maintain support for
education?
If a State’s support for education declined, the Secretary may consider:
•
•
•
•
•

Are there specific severe effects of the COVID-19 pandemic on the State’s economy that
necessitated reductions in support for elementary and secondary education and for higher education?
What steps did the State take to avoid and/or minimize such reductions?
Did the State use Coronavirus State and Local Fiscal Recovery Funds awarded by the U.S.
Department of the Treasury under section 9901 of the ARP Act to support elementary and secondary
education and higher education?
How did reductions in support for elementary and secondary education and for higher education
compare to other budget categories?
Did the State take steps that reduced or will it take steps to proactively reduce its financial resources
in a way that impacted or will impact its ability to meet MOE requirements (e.g., tax changes (and in
what context), additional contributions to rainy day funds)? If so, what was the impact of the
reduction or what is the anticipated impact (e.g., to what extent were its resources reduced or will its
resources be reduced)?

Has the State used or will it use ESSER, GEER, or Higher Education Emergency Relief (HEER)
funding to replace State funding for education?
It is important for the Department to understand the State’s use of pandemic-related Federal funds when
reviewing a request for a waiver. The Secretary may therefore consider:
•
•
•

Will all unallocated ESSER or GEER funds relevant to the waiver be used to provide net new
resources to K-12 schools and to higher education and not be used to replace existing State
commitments to K-12 education and to higher education?
Will all unallocated HEER funds be used to provide net new resources to higher education and not
be used to replace existing State commitments to higher education?
Has the State previously used any ESSER, GEER, or HEER funds to replace State funding for
education?

Note that the factors listed above may not be used to demonstrate that the State maintained effort but rather are
considerations for determining whether a waiver is warranted.
9. When may a State request a waiver of the CARES Act MOE requirements?
A State may request a waiver of the CARES Act MOE requirements at this time for FYs 2020 and 2021. A
State may include requests related to more than one fiscal year in a single waiver request, if necessary.
10. When may a State request a waiver of the CRRSA Act and ARP Act MOE requirements?
A State may request a waiver of the CRRSA Act and ARP Act MOE requirements when the State can
demonstrate that it is unable to comply with the MOE requirements for FY 2022 or FY 2023.
The CRRSA Act and ARP Act require a State to meet MOE based on its levels of State support for education
relative to overall State spending. Accordingly, a State generally will not be able to fully demonstrate it failed
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to meet the CRRSA Act or ARP Act MOE requirements until it has available expenditure data to document
overall State spending for the applicable fiscal year(s) (i.e., FY 2022 and/or FY 2023).
However, in some circumstances, a State may be able to accurately project, prior to the close of a fiscal year for
which fiscal effort must be maintained, that it will not maintain effort based on, for example, a level of
appropriated funds that would not permit the requisite expenditures. In such circumstances, the State may
request an MOE waiver on the basis of projected data. Based on the strength of the projected data and other
information submitted by the State, the Secretary would consider making a preliminary waiver determination
before final expenditure data are available. Any preliminary determination to grant a waiver would be
conditioned on an assurance that the State will not subsequently decrease either its level of State support for
elementary and secondary education or higher education as demonstrated in the original waiver request. That
preliminary waiver determination would become the Secretary’s final determination after the State submits final
expenditure data and demonstrates that it met the condition on levels of State support.
11. How may a State request a waiver of the MOE requirements under the CARES Act, CRRSA Act, or
ARP Act?
A State must submit its waiver request to the Department using the MOE waiver request form (Appendix C)
and submitting the form through its State mailbox, which is [State][email protected].
12. What enforcement actions may the Secretary take if a State fails to maintain fiscal effort and does not
receive a waiver?
If a State fails to meet the MOE requirements and does not request and receive an MOE waiver, the Department
has available a range of enforcement options. For example, the Department could seek recovery of funds under
section 452 of the General Education Provisions Act (GEPA) and withhold the remaining amount of a State’s
GEER I and II, ESSER I and II, EANS, and ARP ESSER awards, as applicable, under section 455 of GEPA.

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Appendix A: Calculating MOE under CARES Act, CRRSA Act & ARP Act Worksheet
CARES Act (Section 18008)
State
Sources of
MOE data

State support data: A State may use either actual State
expenditure data or data representing final appropriated or
allocated amounts for both the baseline levels and the
applicable comparison level (FY 2020 and FY 2021).

CRRSA Act (Division M, Section 317) & ARP Act (Section
2004(a))
State support data: A State may use either actual State
expenditure data or data representing final appropriated or
allocated amounts for both the baseline levels and the
applicable comparison level (FY 2022 and FY 2023).
State overall spending data: A State must use data on actual
State expenditures to demonstrate overall spending. A State
may not use final appropriated or allocated amounts.

Calculation
of MOE
baselines

Elementary and Secondary Education Baseline:

Elementary and Secondary Education Baseline:

1. Determine State support for elementary and secondary
education for each of FYs 2017, 2018, and 2019.
2. Average the State support for elementary and secondary
education for these three fiscal years.

1. Determine State support for elementary and secondary
education for each of FYs 2017, 2018, and 2019.
2. Determine overall State spending for each of FYs 2017,
2018, and 2019.
3. Calculate the percentage of total State spending that is
used to support elementary and secondary education for
each of the three fiscal years by dividing the State’s
support for elementary and secondary education by the
State’s overall spending for each of the three fiscal years.
4. Average the elementary and secondary education baseline
percentages for the three fiscal years.

Example:
State support for elementary and secondary education:
2017: $75
2018: $125
2019: $100
Elementary and Secondary Education Baseline: Average =
($75 + $125 + $100)/3 = $100

Higher Education Baseline:
1. Determine State support for higher education for each of
FYs 2017, 2018, and 2019.
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Example:
State support for elementary and secondary education:
2017: $75
2018: $125
2019: $100

CARES Act (Section 18008)
2. Average State support for higher education for these three
fiscal years.
Example:
State support for higher education:
2017: $30
2018: $35
2019: $25

CRRSA Act (Division M, Section 317) & ARP Act (Section
2004(a))
State’s overall spending:
2017: $1200
2018: $800
2019: $1000
1. Calculate the percentage of total State spending that is
used to support elementary and secondary education:
2017: $75/$1200 = 6.3%
2018: $125/$800 = 15.6%
2019: $100/$1000 = 10%

Higher Education Baseline:
Average = ($30 + $35 + $25)/3 = $30

2. Baseline percentage of support for elementary and
secondary education: Average the percentages in line 1:
(6.3% + 15.6% + 10%)/3 = 10.6%

Higher Education Baseline:

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1. Determine State support for higher education for each of
FYs 2017, 2018, and 2019.
2. Determine overall State spending for each of FYs 2017,
2018, and 2019.
3. Calculate the percentage of total State spending that is
used to support higher education for each of the three
fiscal years by dividing the State’s support for higher
education by the State’s overall spending for each of the
three fiscal years.
4. Average the higher education baseline percentages for the
three fiscal years.
Example:
State support for higher education:
2017: $30
2018: $35
2019: $25

CARES Act (Section 18008)

CRRSA Act (Division M, Section 317) & ARP Act (Section
2004(a))
State’s overall spending:
2017: $1200
2018: $800
2019: $1000
1. Calculate the percentage of total State spending that is
used to support higher education:
2017: $30/$1200 = 2.5%
2018: $35/$800 = 4.4%
2019: $42/$1000 = 4.2%
2. Baseline percentage of support for higher education:
Average the percentages in line 1: (2.5% + 4.4% +
4.2%)/3 = 3.7%

Calculation
of MOE

Elementary and Secondary Education
Calculation:

Elementary and Secondary Education
Calculation:

1. Determine the level of support for elementary and
secondary education for each of FYs 2020 and 2021.
2. Compare FY 2020 level of support for elementary and
secondary education to elementary and secondary
education baseline.
3. Compare FY 2021 level of support for elementary and
secondary education to elementary and secondary
education baseline.

1. Determine the level of support for elementary and
secondary education in the applicable fiscal year
(FY 2022 or FY 2023).
2. Determine State’s overall spending in the applicable fiscal
year (FY 2022 or FY 2023).
3. Calculate the percentage of total State spending that is
used to support elementary and secondary education for
the applicable fiscal year (FY 2022 or FY 2023) by
dividing the State’s support for elementary and secondary
education by the State’s overall spending for the
applicable fiscal year (FY 2022 or FY 2023).

Example:
State support for elementary and secondary education:
2020: $125
2021: $90
15

CARES Act (Section 18008)
Elementary and Secondary Education Baseline: $100
MOE determination:
State support for elementary and secondary education in FY
2020 is $125, which is more than the baseline of $100. State
meets MOE requirement for FY 2020.

CRRSA Act (Division M, Section 317) & ARP Act (Section
2004(a))
Example for ARP FY 2023 MOE:
Note: This example illustrates the MOE calculation for
FY 2023. A State must do this calculation separately for
FY 2022 and FY 2023.
State support for elementary and secondary education:
2023: $125
State’s overall spending:
2023: $1000

State support for elementary and secondary education in FY
2021 is $90, which is less than the baseline of $100. State
does not meet the MOE requirement for elementary and
Percentage of State support for elementary and secondary
secondary education for FY 2021 and may request a waiver of education in FY 2023: $125/$1000 = 12.5%
this MOE requirement from the Secretary.
Baseline percentage of support for elementary and secondary
education: 10.6%
Higher Education Calculation:
1. Determine the level of support for higher education for
each of FYs 2020 and 2021.
2. Compare FY 2020 level of support for higher education to
higher education baseline.
3. Compare FY 2021 level of support for higher education to
higher education baseline.
Example:
State support for higher education:
2020: $30
2021: $25
Higher Education Baseline: $30

Difference between FY 2023 percentage and baseline
percentage:
12.5% - 10.6% = 1.9%
(Note that the State, at its discretion, may round this
difference to the nearest whole number using standard
rounding procedures. Percentages ending in a decimal value
less than 0.5% could be rounded down to the nearest whole
number, and percentages ending in a decimal value of 0.5%
or greater could be rounded up to the nearest whole number.
For this example, the State would likely choose not to round
because it has maintained effort at 1.9%.)
MOE determination:
The proportion of overall spending used to support
elementary and secondary education in FY 2023 is 1.9%
higher than the baseline percentage. This shows that the State

MOE determination:

16

CARES Act (Section 18008)

CRRSA Act (Division M, Section 317) & ARP Act (Section
2004(a))
State support for higher education in FY 2020 is $30, which is maintained support for elementary and secondary education in
the same as the baseline of $30. State meets MOE
FY 2023 at least at the proportional level of support provided
requirement for FY 2020.
in the baseline years. The State meets the MOE requirement
for elementary and secondary education for FY 2023.
State support for higher education in FY 2021 is $25, which is
less than the baseline of $30. State does not meet the MOE
requirement for higher education for FY 2021 and may
Higher Education Calculation:
request a waiver of this MOE requirement from the Secretary. 1. Determine the level of support for higher education in the
applicable fiscal year (FY 2022 or FY 2023).
2. Determine State’s overall spending in the applicable fiscal
year (FY 2022 or FY 2023).
3. Calculate the percentage of total State spending that is
used to support higher education for the applicable fiscal
year (FY 2022 or FY 2023) by dividing the State’s
support for higher education by the State’s overall
spending for the applicable fiscal year (FY 2022 or
FY 2023).
Example for ARP FY 2023 MOE:
Note: This example illustrates the MOE calculation for
FY 2023. A State must do this calculation separately for
FY 2022 and FY 2023.
State support for higher education:
2023: $34
State’s overall spending:
2023: $1000
Percentage of State support for higher education in FY 2023:
$30/$1000 = 3.4%
17

CARES Act (Section 18008)

CRRSA Act (Division M, Section 317) & ARP Act (Section
2004(a))
Baseline percentage of State support for higher education:
3.7%
Difference between FY 2023 percentage and baseline
percentage:
3.4% - 3.7% = -0.3%
(Note that the State, at its discretion, may round this
difference to the nearest whole number using standard
rounding procedures. Percentages ending in a decimal value
less than 0.5% could be rounded down to the nearest whole
number, and percentages ending in a decimal value of 0.5%
or greater could be rounded up to the nearest whole number.)
For this example, the State would likely choose to round 0.3% to 0%.
MOE determination:
After rounding, there is no difference between the proportion
of overall spending used to support higher education in
FY 2023 and the baseline percentage. This shows that the
State maintained support for higher education in FY 2023 at
least at the proportional level of support provided in the
baseline years. The State meets the MOE requirement for
higher education for FY 2023.

18

OMB Control #: 1810-0745
Expiration Date: XXXX

Appendix B: MOE Data Submission
State __________________________________
Data Submission Timelines

FY 2017
FY 2018
FY 2019
FY 2020
FY 2021
FY 2022

FY 2023

State support for
elementary and secondary
education

State support for higher
education

Submitted September 1, 2020;
May be updated by May 17, 2021

Overall State spending

Due May 17, 2021

Submitted December 30, 2020;
May be updated by May 17, 2021
Collected by December 30, 2021
FY 2022 data on appropriated or allocated amounts for State support for elementary and
secondary education, State support for higher education, and overall State spending will be
collected by December 30, 2021. The Department intends to collect final expenditure data
in spring 2023 when data are available.
FY 2023 data on appropriated or allocated amounts for State support for elementary and
secondary education, State support for higher education, and overall State spending will be
collected by December 30, 2022. The Department intends to collect final expenditure data
in spring 2024 when data are available.

Data for State support and overall State spending
A State must submit the required information below. Additionally, a State may use this form to update previously
submitted MOE data for FYs 2017, 2018, 2019, and 2020.
State support for
elementary and
secondary
education

State support for
higher education

Overall State
spending

FY 2017

$

$

$

FY 2018

$

$

$

%

%

FY 2019

$

$

$

%

%

%

%

State support for
elementary and
secondary education
as a proportion of
overall State spending

%

State support for
higher education as
a proportion of
overall State
spending

%

Average
FYs 2017-2019
FY 2020

$

$

Not required

Not required

Not required

FY 2021

$

$

Not required

Not required

Not required

FY 2022
interim data*
FY 2022
(final data)
FY 2023
interim data*
FY 2023
(final data)

$

$

$

%

%

$

$

$

%

%

$

$

$

%

%

$

$

$

%

%

*Appropriated or allocated

19

Additional submission requirements: In an attachment, identify and describe the data sources used in determining the
levels of —

(a) State support for elementary and secondary education;
(b) State support for higher education; and
(c) Overall State spending.
NOTE: You are only required to submit this information for data categories included in your submission
above.
To the best of my knowledge and belief, all of the information in this MOE data submission is true and
correct and the failure to submit accurate data may result in liability under the False Claims Act, 31 U.S.C. §
3729 et seq.; OMB Guidelines to Agencies on Governmentwide Debarment and Suspension
(Nonprocurement) in 2 CFR part 180, as adopted and amended as regulations of the Department in 2 CFR
part 3485; and 18 USC § 1001, as appropriate, and other enforcement actions.

_______________________________________________________________________________________
Governor or Chief State School Officer or Authorized Representative (Typed or Printed Name) Telephone

_______________________________________________________________________________________
Signature of Governor or Chief State School Officer or Authorized Representative
Date

Public Burden Statement
According to the Paperwork Reduction Act of 1995, no persons are required to respond to a collection of information unless such collection displays
a valid OMB control number. The valid OMB control number for this information collection is 1810-0745. Public reporting burden for this
collection of information is estimated to average 5.5 hours per response, including time for reviewing instructions, searching existing data sources,
gathering and maintaining the data needed, and completing and reviewing the collection of information. The obligation to respond to this collection
is required to obtain or retain benefit under section 18008 of the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act, Division M,
Section 317 of the Coronavirus Response and Relief Supplemental Appropriations Act, 2021 (CRRSA) Act, and Section 2004(a) of the American
Rescue Plan Act of 2021 (ARP Act) If you have any comments concerning the accuracy of the time estimate, suggestions for improving this
individual collection, or if you have comments or concerns regarding the status of your individual form, application or survey, please contact Britt
Jung, Office of State and Grantee Relations, Office of Elementary and Secondary Education, U.S. Department of Education, 400 Maryland Avenue,
SW, Washington, DC 20202-6450, email: [email protected] directly.

20

Appendix C: MOE Waiver Request
This form must be used for the submission of a request for a waiver of the requirements noted below. For assistance,
please contact your State mailbox, which is [State][email protected] .
State __________________________________
On behalf of my State, I request a waiver of the following State maintenance of effort (MOE) requirements for the
following fiscal years:
Please check all that apply:









FY 2020 MOE requirement for elementary and secondary education under section 18008 of the CARES Act.
FY 2020 MOE requirement for higher education under section 18008 of the CARES Act.
FY 2021 MOE requirement for elementary and secondary education under section 18008 of the CARES Act.
FY 2021 MOE requirement for higher education under section 18008 of the CARES Act.
FY 2022 MOE requirement for elementary and secondary education under section 317(a) of the CRRSA Act and
section 2004(a) of the ARP Act.
FY 2022 MOE requirement for higher education under section 317(a) of the CRRSA Act and section 2004(a) of
the ARP Act.
FY 2023 MOE requirement for elementary and secondary education under section 2004(a) of the ARP Act.
FY 2023 MOE requirement for higher education under section 2004(a) of the ARP Act.

Data for State support and overall State spending
A State must resubmit the baseline data for FYs 2017, 2018, and 2019 (baseline years) as part of this MOE waiver
request. If these baseline data differ from a State’s previously submitted data, please provide a description of the reason
for the change. Additionally, a State must submit MOE data for the years in which it is requesting this waiver.

FY 2017
FY 2018
FY 2019
Average
FYs 2017-2019
FY 2020
FY 2021
FY 2022
FY 2023

State support for
elementary and
secondary
education

State support for
higher education

Overall State
spending *

$
$
$

$
$
$

$
$
$

$
$
$
$

$
$
$
$

$
$
$
$

State support for
elementary and
secondary education
as a proportion of
overall State
spending

State support for
higher education
as a proportion
of overall State
spending

Not Required
Not Required

Not Required
Not Required

%
%
%
%

%
%

%
%
%
%

*For overall State spending, a State may request a waiver based on final allocations or appropriations. For more
information, see FAQ 10.
Additional submission requirements
In an attachment, please provide:
21

%
%

1. A description of the extent to which the State experienced fiscal burdens in preventing, preparing for, and
responding to the coronavirus and an explanation of how those fiscal burdens affected the State’s ability to
maintain fiscal effort (e.g., the status of and any changes to the State’s rainy day fund, whether the State

experienced a decline in revenues, or an increase in other emergency expenses resulting from the
pandemic, such as expenses related to health care, unemployment insurance, or support for small
businesses); and

2. Documentation and data supporting the description of the State’s fiscal burdens (e.g., revenue data, appropriation
tables, unemployment statistics, etc.) including any State action that impacted State revenue (e.g., tax increases or
decreases).
3. In addition, in its waiver request, a State should submit information on the relevant factors listed below to support
its request. The Secretary may ask States for additional information after States submit the MOE waiver request
form.
In determining whether to grant a State an MOE waiver, the Secretary may consider factors such as:
Has the State increased support for education?
The Department understands that it is possible that a State has maintained or increased overall funding for education and the
proportion of the State budget for education has still declined because of increases in other areas of the budget (e.g., public health). In
these cases, the Secretary may consider:

•
•
•
•
•

Has total State funding for K-12 education and for higher education (calculated separately) increased from the prior fiscal year?
Has total State funding for K-12 education and for higher education (calculated separately) increased over time (e.g., since
baseline years)?
Has per-pupil State funding for K-12 education and for higher education (calculated separately) increased from the prior fiscal
year?
Has per-pupil State funding for K-12 education and for higher education (calculated separately) increased over time (e.g., since
baseline years)?
Has the State appropriated an increase in State funding for K-12 education and for higher education for future fiscal years?

Are there exceptional circumstances that caused the State to be unable to maintain support for education?
If a State’s support for education declined, the Secretary may consider:
•
•
•
•
•

Are there specific severe effects of the COVID-19 pandemic on the State’s economy that necessitated reductions in support for
elementary and secondary education and for higher education?
What steps did the State take to avoid and/or minimize such reductions?
Did the State use Coronavirus State and Local Fiscal Recovery Funds awarded by the U.S. Department of the Treasury under
section 9901 of the ARP Act to support elementary and secondary education and higher education?
How did reductions in support for elementary and secondary education and for higher education compare to other budget
categories?
Did the State take steps that reduced or will it take steps to proactively reduce its financial resources in a way that impacted or
will impact its ability to meet MOE requirements (e.g., tax changes (and in what context), additional contributions to rainy day
funds)? If so, what was the impact of the reduction (e.g., to what extent were its resources reduced or will its resources be
reduced)?

Has the State used or will it use ESSER, GEER, or Higher Education Emergency Relief (HEER) funding to replace State
funding for education?
It is important for the Department to understand the State’s use of pandemic-related Federal funds when reviewing a request for a
waiver. The Secretary may therefore consider:
•
•
•

Will all unallocated ESSER or GEER funds relevant to the waiver be used to provide net new resources to K-12 schools and to
higher education and not be used to replace existing State commitments to K-12 education and to higher education?
Will all unallocated HEER funds be used to provide net new resources to higher education and not be used to replace existing
State commitments to higher education?
Has the State previously used any ESSER, GEER, or HEER funds to replace State funding for education?

22

To the best of my knowledge and belief, all of the information in this MOE data submission are true and correct and the
failure to submit accurate data may result in liability under the False Claims Act, 31 U.S.C. § 3729 et seq.; OMB
Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement) in 2 CFR part 180, as adopted
and amended as regulations of the Department in 2 CFR part 3485; and 18 USC § 1001, as appropriate, and other
enforcement actions.
_____________________________________________________________________________________________
Governor or Chief State School Officer or Authorized Representative (Typed or Printed Name)
Telephone
_____________________________________________________________________________________________
Signature of Governor or Chief State School Officer or Authorized Representative
Date

Public Burden Statement
According to the Paperwork Reduction Act of 1995, no persons are required to respond to a collection of information unless such collection displays
a valid OMB control number. The valid OMB control number for this information collection is 1810-0745. Public reporting burden for this
collection of information is estimated to average 2 hours per response, including time for reviewing instructions, searching existing data sources,
gathering and maintaining the data needed, and completing and reviewing the collection of information. The obligation to respond to this collection
is required to obtain or retain benefit under section 18008 of the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act, Division M,
Section 317 of the Coronavirus Response and Relief Supplemental Appropriations Act, 2021 (CRRSA) Act, and Section 2004(a) of the American
Rescue Plan Act of 2021 (ARP Act) If you have any comments concerning the accuracy of the time estimate, suggestions for improving this
individual collection, or if you have comments or concerns regarding the status of your individual form, application or survey, please contact Britt
Jung, Office of State and Grantee Relations, Office of Elementary and Secondary Education, U.S. Department of Education, 400 Maryland Avenue,
SW, Washington, DC 20202-6450, email: [email protected] directly.

23