MSDE outlines ESSER late‑liquidation status after federal changes and temporary injunction

Krishna Tuller, deputy state superintendent for finance and operations at the Maryland State Department of Education, told the committee that MSDE has submitted late‑liquidation and drawdown requests to the U.S. Department of Education for ESSER funds and is coordinating closely with the Maryland Office of the Attorney General.

Tuller summarized the federal changes that prompted the requests: the U.S. Department of Education issued a notification on March 28 that changed ESSER program parameters and effectively ended a previously expected late‑liquidation period. The notice required states seeking extensions to explain why an extension was necessary to mitigate COVID‑related impacts and to request the Department’s discretionary approval.

Tuller said MSDE had identified roughly $98.7 million in a late‑liquidation request at the time of the March 28 change, composed of about $41.9 million in expenditures already made by local education agencies and roughly $56.7 million in encumbered but unspent funds. He said those figures were estimates and that MSDE had requested additional documentation and invoices from LEAs.

On May 6 the U.S. District Court for the Southern District of New York issued a preliminary injunction temporarily blocking enforcement of the Department’s March 28 timeline change; on May 11 the Department of Education notified participating plaintiff states, including Maryland, that it had modified the liquidation period to May 24, 2025. “They have asked states to use these 14 days period to wind down existing obligations for the work that has already been completed,” Tuller said.

Tuller told the committee that MSDE is asking LEAs to submit invoices for payments already completed and that MSDE is working with the Office of the Attorney General and multistate partners to determine next steps, including possible resubmission of reimbursement requests. He said it is currently uncertain whether all previously planned projects could be completed and reimbursed by the May 24 deadline because some projects were scheduled to finish in January under earlier approvals.

Chair Crawford and other board members asked whether MSDE expected to meet the modified deadlines; Tuller said staff are mobilized and aiming to assemble documentation for submission “well before next Friday,” but he cautioned that the precise amount ultimately eligible for reimbursement remained unclear.

No formal committee action or vote on ESSER spending or policy was taken at the meeting; the update was informational and staff said they would report any further developments to the board as they occur.