Can Stimulus Funds Scale New Learning Models?

Susan Gentz is the founder of BSG Strategies and an education policy expert working to educate district leaders on funding, flexibility, and opportunities for innovation in state and federal policy.

The Stimulus Bill

 On March 11, 2021, President Biden made good on a key promise if elected president - by signing the American Rescue Plan, a historic relief bill for the nation. As part of the new law, states and local education agencies (LEAs) are going to receive $122 billion dollars in federal funding for education. The bill is the largest relief bill to date, but there are also more parameters Congress put in place compared to the earlier stimulus laws. This bill requires at least 20% of funds must be used to address learning loss through evidence-based interventions that respond to students’ academic, social, and emotional needs. The remaining funds can be put towards any allowable use under the Elementary and Secondary Education Act, Individuals with Disabilities Education Act; Carl D. Perkins Career and Technical Education Act; and Adult Education and Family Literacy Act. The Alliance for Excellent Education has a helpful breakdown here.

State education agencies will also keep a portion, and are required to use the funds for:

• 5% to address learning loss

• 1% for evidence-based, comprehensive afterschool programs

• 1% for evidence-based summer enrichment, and

• 2.5% for educational technology

The definition of evidence-based interventions comes from the Elementary and Secondary Education Act which states that, “The term 'evidence-based,' (from section 8101(21)(A) of the ESEA) when used with respect to a State, local educational agency, or school activity, means an intervention that demonstrates a statistically significant effect on improving student outcomes or other relevant outcomes. The criteria for identifying "evidence-based" interventions based on each of ESSA's four levels are as follows:

• Strong evidence from at least one well-designed and well-implemented experimental study;

• Moderate evidence from at least one well-designed and well-implemented quasi-experimental study; or

• Promising evidence from at least one well-designed and well-implemented correlational study with statistical controls for selection bias; or

• Demonstrates a rationale based on high-quality research findings or positive evaluation that such activity, strategy, or intervention is likely to improve student outcomes or other relevant outcomes; and includes ongoing efforts to examine the effects of such activity, strategy, or intervention.

The funds will again be distributed to states and districts based on their Title I, part A formulas. The Alliance for Excellent Education has a helpful breakdown here.

Planning For and Using the Funds

There is hope that “pockets of innovation” are going to become a thing of the past, by making innovation much more widespread instead of being limited to small-scale efforts. COVID-19 required entire districts to create virtual, hybrid, and blended learning environments across the globe. Although the 2020-2021 school year was not ideal and came with many challenges, there are now glimmers of hope that systemic change is on the horizon -- and the American Rescue Plan is ensuring that funding is available to address needs of access and learning opportunities for students remain moving forward to “post-covid life.”

With districts spending large amounts on devices and connectivity during the first two rounds of stimulus funding, this third round must ensure that the first two rounds weren’t only for if schools were closed - but opportunities to build and scale as students return to the classroom.

There seem to be two schools of thought when it comes to how to spend the $122 billion just authorized by Congress. On one hand, the basic rule has been to not spend one time funds on recurring costs. On the other hand, this is different from the last stimulus bill in 2009, which was passed to bridge the gap until the economy recovered. This stimulus is to mend the wounds of COVID-19 for education, so spend the dollars how you need, in this moment, with urgency. Both are valid thoughts. Under this plan, districts have until September 30, 2023 to spend these dollars. That gives administrators two and a half years to plan and purchase.

These federal dollars are unprecedented for education, and are offering large districts like Philadelphia an opportunity to have funds on reserve and where “scarcity won’t be the ruling principle.” The influx of funds is unprecedented. For example, a school district in New York with an enrollment of around 3,000 is estimated to receive $2.7 million dollars, an increase of around 4% of their annual operating budget which is just over $64 million. Another district in New Jersey is set to receive $20 million which is around a 12% increase of their annual operating budget of $165 million. The percentages of budget vary widely based on several factors used in the complex Title 1, Part A formula, which aims to provide additional services through federal funding for low-income students.

There is now funding, flexibility, leadership, and time in place to allow district leaders a once in a lifetime opportunity to scale alternative learning models. These funds must be used to keep the good from the education response to COVID-19 and prepare students for the future of learning and of work.