What Happens if Schools Don’t Spend Federal Funds Before Sept. 30 Deadline?

School districts nationwide are facing a Sept. 30 deadline to spend the last round of nearly $200 billion in federal COVID-19 funds on helping students recover from learning losses due to school closures and other needs. The deadline, sometimes called a fiscal cliff, marks the last day districts can spend federal money on certain expenditures, but there are some extensions and deadlines to know about. According to the Edunomics Lab, which tracks federal spending nationwide, the money that is not spent by districts will return to the Department of the Treasury.