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The Impact of ESSER Funding on Student Transportation

The Covid-19 pandemic had a severe impact on schools across the United States. To allow schools to give the best possible education more importantly safely, the federal government injected roughly $190 billion, the largest emergency aid funding, into U.S. K-12 public schools.

As part of this initiative, the Elementary and Secondary School Emergency Relief (ESSER) was authorized through three pieces of federal legislation:
  • ESSER I (March 2020): The Coronavirus Aid, Relief and Economic Security (CARES) Act provided approximately $13.2 billion.
  • ESSER II (December 2020): The Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act further added $54.3 billion.
  • ESSER III (March 2021): The American Rescue Plan (ARP) Act resulted in another $122 billion.
The final allocation of ESSER funds was to be committed by September 30th, 2024. This means that a state or district cannot enter new contracts using American Rescue Plan (ARP) money unless it receives a spending extension from the U.S. Department of Education. However, spending can continue till Jan 2025, or even further for some.

How Did the ESSER Help?

At a time when the entire world was at a loss for how the world would be able to progress normally, there were some sectors that were still trying to function as they do, like schools. This money was to “help safely reopen and sustain the safe operation of schools and address the impact of the coronavirus pandemic on the Nation’s students.”

ESSER funds came with a list of “allowable expenses,” defining what causes the money could be used for. Schools and districts were allowed to use the money for salary increments for current bus drivers, other operational expenses related to recruiting and retention, and for investing in technological solutions to address the bus driver shortage.

Other uses included:
  • Purchase educational technology.
  • Plan and implement activities related to summer learning and supplemental after-school programs.
  • Conduct activities that were necessary to continue operating and providing services, including current and prospective employment.

What Will Be the Impact of the End of the ESSER Funding?

Schools are now under a tight deadline to liquidate this funding. If the funds aren’t spent by then, they will return to the federal government.
Many school districts are figuring out how to replace funding with other sources and/or eliminate the staff and programs supported by the emergency relief funds.
With schools already divided under low-income, that mostly serve students of color and marginalized groups, and high-income group, the former will be hit the hardest as they were given larger allocations. The result of this retraction would lead to fewer alternatives to school-based support.

How Will it Impact Student Transportation?

It will result in:
  • Potential layoffs: Due to the shortage of bus drivers, there will be a lack of an efficient school bus system, which in turn will stretch onto the remaining bus drivers.
  • Ending of after-school programs: As teachers and extra personnel are let go, after school activities would have to come to an end as well, further decreasing the need for bus drivers to transport students.
  • Unable to keep up with new technology to reduce costs: The retraction of funding would leave schools in a difficult position of finding new streams of revenue. By investing in technology and software, they can reduce costs and enhance operational efficiency.

How Can Schools Still Make Use of This Funding?

With a countdown on their hands, schools must use these resources very intelligently. One way is to invest in technology, such as school bus routing software that reduces operating costs to help combat the withdrawal of ESSER funds.

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