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Related Topic: Fiscal

More Federal Funds in the Pipeline

During the pandemic, Congress established the $279 billion Education Stabilization Fund to support K-12 and higher education systems across three separate pieces of legislation The stabilization fund includes:

  • The $189.5 billion Elementary and Secondary School Emergency Relief (ESSER) Fund provides flexible relief aid to states and schools to respond to the effects of the pandemic. States can set aside up to 10% of ESSER funding for statewide use. Local school districts have spending authority over 90% of ESSER funding and have broad discretion over how the funds are distributed and spent in schools. ESSER funds must be spent by January 2025.
  • The $76 billion Higher Education Emergency Relief Fund provides relief to nearly every higher education institution in the country. At least 50% of these funds must be distributed as emergency aid to students, which can fund anything under a student’s cost of attendance, including food, housing, course materials, technology, health care and child care. The remaining 50% can be used to defray the impact of lost revenue or expenses required to respond to the pandemic, among other uses.

States also invested in education through the CRF. According to NCSL’s analysis, 38 states allocated $9.8 billion in relief funds for education, including $6.6 billion for K-12 education and $2.5 billion for higher education.

Related Resources

FY 2026 State Budget Status

This page tracks the status of FY 2026 state budgets as they are passed by state legislatures and signed by governors.
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Earned Income Tax Credit Overview

Overview of state and federal earned income tax credits, including recently enacted legislation. EITC is a tax credit that reduces the amount of federal income tax owed and is refundable if the tax filer's credit is larger than their tax liability.
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One-time vs. Recurring Revenues and Expenditures

Publication by NCSL's Budget Working Group. The report evaluates the challenges of differentiating between recurring vs. nonrecurring revenues and expenditures in short- and long-term budgeting practices.
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