A Guide to ESSER Fund Alternatives

Written: July 2024                         Updated: January 2026

The COVID-19 pandemic reshaped how public schools operate and how school districts think about funding. To stabilize classrooms during that disruption, the federal government created the Elementary and Secondary School Emergency Relief (ESSER) program on March 27th, 2020. They established two additional relief programs on December 27, 2020, and March 11, 2021, totaling $190 billion in support for schools during the pandemic.

ESSER funds became a lifeline for covering immediate needs like mental health services, classroom supplies, academic recovery, and teacher salaries. But as school administrators reflect on the end of ESSER in September 2024, many districts are facing a fiscal cliff and asking the same question: “What are the most effective ESSER fund alternatives moving forward?”

With federal funding no longer flowing at emergency levels, school district budgets must rely on a smarter mix of state and local funding, alternative funding sources, and innovative solutions that protect essential programs and student outcomes. The path forward is about moving from short-term relief to sustainable models that support students, educators, and communities for the long term.

What Is ESSER Funding?

ESSER funding was a federal program created in response to the unprecedented disruption caused by the COVID-19 pandemic. Beginning in March 2020, Congress approved multiple relief packages, including the American Rescue Plan, to deliver emergency federal funding directly to school districts nationwide. These ESSER funds were designed to help elementary and secondary school systems stabilize operations, maintain safe learning environments, and continue serving students during a period of extreme uncertainty.

For many public school districts, ESSER funds helped them to:

• Offset rising operational costs
• Support mental health resources
• Invest in academic recovery
• Address learning loss
• Expand summer school and after-school programs
• Purchase personal protective equipment and classroom supplies
• Provide additional support for disadvantaged and low-income students
• Sustain essential educational programs that may have otherwise been cut

While the funding was never intended to be permanent, it played a critical role in keeping public education systems functioning during a national crisis.

How the End of ESSER Impacts Education

As the ESSER program ended in September 2024, school districts across the country began feeling financial strain. Without ongoing federal aid at emergency levels, many districts are now facing difficult decisions related to school budgets, staffing, student enrollment, and the continuation of essential programs.

The loss of this temporary financial support has created a fiscal cliff for school leaders who must now balance shrinking budgets with growing student needs. To protect student success and avoid setbacks in student outcomes, school districts must move quickly to identify sustainable funding alternatives that provide long-term stability rather than short-term relief.

7 ESSER Fund Alternatives to Support Schools

The end of ESSER has pushed many school districts to rethink how they fund essential programs and ongoing support. While emergency federal aid is no longer available, districts are not without options. The following seven funding alternatives offer practical paths forward for public schools navigating the post-ESSER landscape.

1. State & Local Grants

State and local grants are often one of the most accessible ESSER fund alternatives for school districts. Many states offer funding focused on STEM initiatives, mental health services, and student well-being, while local agencies may provide local funding tied to regional priorities. These grants help school districts continue essential programs without placing additional strain on school district budgets.

A good first step is staying in close contact with your state’s department of education and local education agencies. Grant calendars, newsletters, and regional education networks can help school administrators spot opportunities early and plan ahead.

2. Federal Grants

Even after ESSER ended, federal funding remains a key support for school districts. Programs like Title I funds help serve low-income students, while the Individuals with Disabilities Education Act (IDEA) provides resources for students with special needs. Competitive grants through the Department of Education also support academic recovery, mental health, and innovative programs.

Districts can maximize these funding sources by aligning grant applications with student needs and clearly showing how funds will improve student outcomes. Federal grants may take more planning, but they may offer stable, long-term financial support.

3. Private Foundations and Corporate Partners

Private foundations and corporate partners can be valuable alternative funding sources, especially for districts looking to replace one-time ESSER funds with longer-term solutions. Many foundations focus on educational programs, mental health resources, or services for disadvantaged students, while businesses often support schools through grants or public-private partnerships.

School leaders can start by identifying organizations whose missions align with district goals. Building relationships with private funders takes time, but it often leads to more flexible funding and shared investment in student success.

4. Community Fundraising and Local Support

Community-based efforts may not replace large-scale federal aid, but they can still play an important role in supporting schools after ESSER ends. Contributions from community members, local businesses, and parent groups can help cover classroom supplies, after-school programs, and other immediate needs.

Hosting community events, partnering with education foundations, or launching targeted fundraising campaigns helps schools raise funds while strengthening trust and connection. These efforts also remind families that public education is a shared responsibility.

5. Higher Education Partnerships

Partnering with higher education institutions opens the door to shared resources and creative solutions. Colleges and universities often work with school districts to offer dual-credit classes, tutoring, teacher training, and pathways that benefit both K–12 students and college students.

These partnerships can reduce operational costs, support professional development, and strengthen education initiatives across grade levels. Reaching out to nearby universities or community colleges is a practical way to expand offerings without adding pressure to already-tight school budgets.

6. Budget Reallocation and Strategic Planning

For many districts, the fastest way to respond to the end of ESSER is to take a closer look at existing school budgets. Thoughtful budget reallocation allows school leaders to shift resources toward essential programs, staffing priorities, and student well-being without relying on emergency funding.

This process works best when paired with clear strategic planning and open communication. While it’s not easy, reallocating funds can help districts stabilize school funding and stay focused on long-term goals during financial transitions.

7. Technology Leasing and Digital Infrastructure

Technology leasing gives school districts flexibility when upfront purchases are no longer realistic after ESSER ends. Instead of significant one-time expenses, leasing spreads costs over time, helping manage operational costs more effectively.

This approach supports access to devices, platforms, and tools that improve the learning environment, including online courses and blended instruction models. By choosing scalable, well-supported technology solutions, districts can adopt innovative solutions without stretching limited funding sources too thin.

How Synchronous Online Learning Fills the Gap

As school districts adjust to the end of ESSER, many are seeking solutions that stretch limited funding while maintaining instructional quality. Synchronous online learning helps fill that gap by providing live, real-time instruction led by certified teachers, without the long-term costs tied to hiring and staffing hard-to-fill positions.

Unlike asynchronous instruction, which is pre-recorded and self-paced, synchronous instruction livestreams certified teachers directly into classrooms. Students are present together in the classroom, following the school’s bell schedule, while an in-person facilitator supports classroom routines and student needs. The teacher leads lessons live while a Learning Management System (LMS) supports instruction by housing lesson materials, assignments, grades, and assessments in one centralized place.

The Benefits of Synchronous Online Learning

What makes this model especially effective is how seamlessly it fits into existing school operations. It makes it easy for schools to maintain continuity, instructional quality, and classroom structure without disruption. Districts can manage staffing gaps, control operational costs, and keep students learning, even when traditional hiring isn’t possible. 

Beyond cost efficiency, synchronous online learning supports stronger student outcomes by keeping learning interactive and structured. Students receive immediate feedback, collaborate with peers, and stay engaged throughout the school day, rather than working independently through disconnected tasks. For districts facing ongoing financial challenges, this model offers a scalable way to support students, stabilize learning environments, and sustain academic progress without relying on emergency funding streams.

Beyond ESSER Funding: How Proximity Learning Helps Districts Thrive

The end of ESSER funding marked a turning point for public schools, but it doesn't have to mean scaling back expectations for students or educators. With thoughtful planning, diversified funding sources, and flexible instructional models, school districts can continue to support students, protect essential programs, and adapt to long-term financial realities without relying on emergency aid.

Proximity Learning was built for moments like this. With more than 15 years of experience delivering synchronous instruction, we have partnered with 1,500 schools nationwide, helping fill thousands of classrooms with certified teachers specifically trained for virtual instruction. Our model has consistently delivered measurable academic growth across core subjects while saving districts an average of $5,000–$10,000 per teacher. That’s not a short-term fix—it’s a proven, sustainable solution designed to support student success even as funding landscapes change.

If your district is navigating the post-ESSER landscape and seeking a reliable way to maintain high-quality instruction, contact us today. Let’s explore how Proximity Learning can help you stabilize staffing, stretch budgets further, and keep students learning—without compromise.