The largest portion of CARES Act Funding (under ESSER) will almost entirely be used to replace some of the funding ISDs would have normally received (which are State funds) in a non-pandemic year. Texas is using ESSER as a piggy bank because state revenue (sales tax) has plunged due to COVID19 as have the the oil and gas taxes.
See Q & A #8 (page 11) on this TEA document:
Much like FEMA, 75% of additional costs due to Coronavirus expenses (which occurred between March 1 - May 20, 2020) can be reimbursed via CRF. However, there is a maximum reimbursement limit equal to $50,000 or $250 per low-income student (whichever amount is higher).
See Q & A #2 (page 12) on this TEA document:
The 5% is going to private schools and virtual education vendors. How much is 5% ? Let's assume a local ISD is expecting to recover $10M in CARES funding, 5% of this is $500,000.
Based on this guidance from the Texas Education Agency, the ISD hoping to recover $10M, must use $500K - of their CARES funding - to pay for services requested by private non-profit schools within district boundaries. If there are none, ISDs can spend 100% of ESSER funds. See TEA link above p9, Q31
Federal stimulus funding appropriated by Congress to help states and school districts deal with the effects of the coronavirus pandemic could find its way into the coffers of private schools and virtual education vendors.
Georgina C. Pérez