Funding Sources

As the funds provided through American Rescue Plan (ARP) Elementary and Secondary School Emergency Relief (ESSR) Fund III (ARP ESSER III) come to an end, many local education agencies (LEAs) are looking for alternative ways to sustain successful investments. 

A variety of funding sources are available, such as ESEA, IDEA, and other state and federal educational grants. These funds can be combined in various ways to maximize resources and help sustain ESSER III investments. In Colorado, funds can be combined by either braiding or blending.

• Braiding: Braided funds maintain their grant-specific identities. Funds become interlaced as LEAs utilize various amounts to support different aspects of investments. Despite being intertwined and looped together, funds can be traced back to their original sources.
• Blending: Blended funds are combined. Statutory authority is required to blend funds, to ensure they continue to meet the intents and purposes of their original sources. One option for blending is through the Alternative Uses of Funds Authority (AUFA) in the ESEA Consolidated Application. AUFA allows Small Rural School Achievement (SRSA)-eligible LEAs to use Title II, Part A and Title IV, Part A funds for activities under any of the allowable uses for SRSA grant funds.

Under some federal programs, such as ESEA, LEAs must be sure to follow the supplement, not supplant requirement. Other federal programs, such as IDEA, require LEAs to follow maintenance of effort requirements.

• Supplement, Not Supplant: Designed to ensure that federal funds provide extra support, beyond what LEAs would spend on education with state and local funds. Supplement, not supplant compliance is tested differently based on the federal program.
• Maintenance of Effort: Designed to ensure that LEAs budget and expend the same amount of state and local funding for special education that it expended in the previous fiscal year, regardless of the amount  received through IDEA.

When determining which funds to utilize and how to maximize their benefits, it is crucial that LEAs understand the allowable uses of each funding source and follow all federal regulations and guidelines that apply.

Available Funding Streams

CDE’s Funding Matrix

A resource that allows LEAs to look up a variety of investment types and/or activities and see what funding streams are available.

ESEA/ESSA

The Elementary and Secondary Education Act (ESEA), reauthorized in 2015 as the Every Student Succeeds Act (ESSA), provides funding for elementary and secondary education. Allowable uses of these funds include, but are not limited to: professional development, supplemental instructional materials, resources to support educational programs, and activities to promote parental involvement. ESSA includes the following formula grants:

• Title I, Part A - Supporting At-Risk Students: Provides resources to schools and LEAs to ensure that all children have a fair, equitable, and significant opportunity to obtain a high-quality education and close achievement gaps. Although the amount of Title I, Part A funds allocated to a school/LEA is based on student poverty rates, not every child that benefits from Title I, Part A is necessarily experiencing poverty. Title I, Part A programs address the needs of students who are lowest-performing and most at-risk for not meeting Colorado English Language Proficiency (CELP) standards and Colorado Academic Standards (CAS).
• Title I, Part C - Supporting Migrant Students: Supports migrant students in reaching high standards of academic achievement by ensuring they are not penalized due to disparities in curricula, graduation requirements, academic content, and achievement standards, and ensuring they are provided appropriate educational services and opportunities.
• Title I, Part D - Supporting Neglected and Delinquent Youth: Supports neglected or delinquent children and youth in meeting challenging Colorado academic content and achievement standards, through improved education services, services to help them successfully transition from institutionalization to further education or employment, dropout prevention, and systems to support dropouts and youth returning from correctional facilities in continuing their education.
• Title II, Part A - Preparing, Training, Recruiting, and Retaining Quality Educators: Supports academic achievement by improving effective instruction. LEAs can use these funds to recruit or retain educators, improve educator quality and effectiveness, and increase low-income and minority student access to effective teachers, principals, and other school leaders. Improving teacher quality and effectiveness includes helping educators recognize and address student wellbeing and engagement concerns.
• Title III, Part A - Language Instruction for English Learners (ELs) and Immigrant Students: Supports ELs in learning English and meeting state academic standards. Funds can be spent on three types of activities: providing effective language instruction educational programs (LIEPs), providing effective professional development, and enhancing or supplementing LIEPs, including parent, family, and community engagement.
• Tile IV, Part A - Student Support and Academic Enrichment: Helps provide a well-rounded education, improve school learning conditions, and improve use of technology in schools. LEAs can allocate these funds to a variety of programs and interventions that promote healthy, safe, supportive, and drug-free school environments under three categories of activities:
  • Well-Rounded Educational Opportunities
  • Activities to support Safe and Healthy Students
  • Activities to support the Effective Use of Technology
• Title V, Part B - Rural Education Achievement Program (REAP): Supports the unique needs of rural districts that may lack sufficient resources and personnel to compete effectively for federal grants and whose formula grant allocations are too small to be effective in meeting their intended purposes. REAP includes two formula grant programs:
  • Rural and Low-Income School (RLIS): Targets rural LEAs that serve a large number of low-income students
  • Small, Rural School Achievement (SRSA): Provides funds to very small, rural LEAs
• Tile VI, Part A - Indian and Alaska Native Formulat Grant: Supports American Indian, Alaska Native, Pacific Islander, and Native Hawaiian students in meeting challenging state academic content and achievement standards, and supports LEAs in meeting these students’ unique cultural needs.

For more information, visit: 

• CDE’s ESEA Launchpad
• CDE’s Migrant Education Program
• CDE’s American Indian Education
• CCSSO’s How Traditional U.S. Department of Education Grants Can Help Sustain ESSER Activities

IDEA

The Individuals with Disabilities Education Act (IDEA) supports the education of children and youth (ages 3-21) with disabilities. IDEA also funds early-intervention services for infants and toddlers (0-2) and their families.

IDEA funds provide special education and related services to students with disabilities. LEAs may use up to 15 percent of their IDEA, Part B allocation to provide Comprehensive Coordinated Early Intervening Services (CCEIS) to students without identified disabilities who need extra support to succeed in the general education environment.

LEAs identified with disproportionality must spend 15 percent of their IDEA, Part B allocation on CCEIS support to students.  Disproportionality means that students of particular racial/ethnic groups are more likely to be identified as having disabilities, assigned to particular educational settings, disciplined more harshly, etc., than would be expected based on their number within the LEA population. Funds may serve children not currently identified as needing special education or related services, who need additional academic and behavioral support to succeed in the general education environment, as well as children with disabilities.

Unlike most other federal educational legislation, IDEA does not have a traditional supplement, not supplant provision.  Instead, it stipulates that IDEA funds must be used for students with disabilities, and LEA support for students with disabilities must equal or exceed its support for students without disabilities, regardless of the amount of IDEA funds received. State and local support for students with disabilities may not be decreased from the prior year.

IDEA funding is provided through three formula grants and discretionary grants.

• Formula Grants: Awarded to states annually, these funds can be allocated for services for children, and youth, and early intervention.
  • Part B: Services for children and youth ages 3-21
  • IDEA Part B 619 (ages 3-21)
    • Preschool Grants Program 611 (ages 3-5)
  • Part C: Infants and Families Program.  Early-Intervention grants for infants and toddlers (ages 0-2) and their families
• Discretionary Grants: Awarded through a competitive process. Peer reviewers score applications based on grant, legislative, and regulatory requirements. 

For more information, visit:

• CDE’s Office of Special Education
• CDE’s Early Childhood Special Education Services
• CDE’s Mandatory Comprehensive Coordinated Early Intervening Services

Gifted Education Funding

There are four funding sources for programs and services for gifted students:

1. State Categorical Funds: Dependent on annual allocations, these funds are supplemental and amounts  are determined by a funding formula.
2. Universal Screening and Qualified Personnel: Available to Administrative Units (AUs) to offset the costs of employing qualified personnel to administer the gifted program and/or the cost of universal screening. 
3. AU/District Funds: Supplement state funds to provide a comprehensive gifted program that provides a continuum of services in all areas of giftedness.
4. Local Grants and/or Federal Grants: Funds provided under ESEA/ESSA, and other discretionary grants for which LEAs/AUs can apply. A variety of Title funds can be allocated to programs that support gifted students.

For more information, visit CDE’s Office of Gifted Education.

READ (Reading to Ensure Academic Development) Act

Focuses on early literacy, especially for students at risk of not reading at grade level by the end of 3rd grade. The READ Act includes provisions for teacher training and student education and assessment. The READ Act does not provide funding directly, but established two grants to support both READ ACT provisions.

The Comprehensive ELG Program supports a comprehensive approach to improving early literacy, focused on implementing and sustaining scientifically and evidence-based reading instruction:

• Comprehensive Early Literacy Grant: Supports implementation of literacy support and intervention instruction programs to help K-3 students achieve reading competency. It is implemented as a 4-year grant cycle; year 1 is for planning and initial implementation and years 2-4 are for operationalization.
• Sustainability Grant: Provides LEAs with one additional year of financial support. LEAs must complete the initial four-year Comprehensive Early Literacy Grant cycle prior to applying.
• Early Literacy Professional Development Grant: Supports LEAs in providing their elementary educators with professional development and training to implement scientifically-based reading research (SNRR) programs and strategies for K-3 students. Eligible LEAs must be already implementing evidence-based or scientific universal instruction and interventions that are showing significant growth toward reading competency.

For more information, visit CDE’s Early Literacy Grant.

English Language Proficiency Act (ELPA)

These state formula-based funds support LEA implementation of evidence-based English language proficiency (ELP) or English language development (ELD) programs. LEAs must provide these programs regardless of funding. LEA allocations are based on the total number of eligible English Learners (ELs), who include Non-English Proficient (NEP), Limited English Proficient (LEP), and Fluent English Proficient M1/M2 (FEP) students  in evidence-based programs. The number of eligible students is certified through the annual Student October Count. LEAs may receive funding for eligible ELs for up to five budget years, including prior years of funding.

For more information, visit CDE’s English Language Proficiency Act.

Empowering Action for School Improvement (EASI)

Allows LEAs to apply for various grants in one application. Funds are aimed at LEAs with schools designated for Comprehensive Support and Improvement (CS), Targeted Support and Improvement (TS), or Additional Targeted Support (A-TS) under ESSA, or Improvement, Priority Improvement, Turnaround, or Watch under Colorado’s state accountability system. Awards are “needs-based,” the goal being to match school needs with evidence-based strategies and adequate resources. 

For more information, visit CDE’s Empowering Action for School Improvement.

State and Federal Grants

Provide SEAs, LEAs, and schools with resources to fund investments they may be unable to fund another way. Grants are available through competitive application and review processes. Each grant has its own set of regulations and reporting requirements that SEAs, LEAs, or schools must follow. SEAs, LEAs, and schools may be eligible for various Federal grants; only LEAs and schools are eligible for state grants.

For more information, visit CDE’s Office of Grants Program Administration or U.S. Department of Education’s Discretionary Grants.

Sources

• Council of Chief State School Officers (CCSSO), How Traditional U.S. Department of Education Grants Can Help Sustain ESSER Activities document
• North Dakota Department of Public Instruction, Funding Your Plan: Best Practice to Sustain Investments document
• U.S. Department of Education, Getting Started with Discretionary Grant Applications website
• U.S. Department of Education, About IDEA website
• U.S. Department of Education, IDEA State Formula Grants website
• U.S. Department of Education, IDEA Discretionary Grants website

ESSER Sustainability Toolbox Home Page