In a dramatic turn of events, the U.S. Department of Education has reversed course on its earlier decision to cancel the extended spending timeline for COVID-era relief funds. As of June 26, 2025, school districts in all states now have until March 30, 2026, to spend their remaining ESSER and related pandemic funds—reinstating the original liquidation deadline.
For many school districts, this funding represents a second chance.
Programs that were paused or downsized due to funding uncertainty—including student services, transportation contracts, and after-school support—can now be restarted. But with litigation ongoing and future policy shifts possible, districts should act quickly and strategically to obligate and liquidate remaining funds.
A Crucial Opportunity for Specialized Transportation
This funding extension presents a powerful opportunity for districts to reinvest in transportation solutions that serve students with the greatest need:
McKinney-Vento Students
Students experiencing homelessness often face daily transportation instability, which directly impacts attendance and learning continuity. Districts can use ESSER funds to provide reliable alternative transportation options for these students—including door-to-door rides, consistent drivers, and coordination with school liaisons.
Children in Foster Care
Foster care placements often require mid-year school changes or long commutes to maintain educational stability. These students benefit from flexible and consistent transportation arrangements. ESSER funds can be applied to meet these unique logistics, minimizing disruption and keeping students connected to trusted school environments.
Students with Disabilities
Pandemic disruptions exacerbated service gaps for students with IEPs. Extended funding can support individualized transportation that aligns with students’ educational plans, therapy, and support services. Alternative Student Transportation includes enhanced safety equipment, monitors, adaptive vehicles, and consistent, educated drivers to create a trusted environment for these students.
Students Displaced by Natural Disasters
As climate-related emergencies grow more frequent, districts must be prepared to relocate and re-enroll students at a moment’s notice. Specialized transportation ensures students remain in school despite physical displacement—whether due to wildfires, floods, or other emergencies.
Why Alternative Student Transportation Deserves a Seat at the Funding Table
Too often, transportation is an afterthought in academic recovery planning. But for vulnerable students, transportation enables this recovery. For many students, it’s the difference between accessing services or missing them entirely. Between consistent attendance or chronic absenteeism. Between progress and regression.
Investing remaining ESSER funds in transportation is not just compliant, it’s strategic. The pandemic highlighted the need for more resilient, adaptable education systems. Transportation must be part of that resilience.
What Districts Should Do Now
Time is limited, and future shifts in federal policy remain possible. Here’s how districts can move forward with urgency:
1. Revisit Previously Paused or Denied Projects
If your district paused or canceled transportation initiatives due to the March 2025 guidance, it’s time to reevaluate. Projects previously deemed “late liquidation” can now move forward.
2. Prioritize Projects that Serve High-Need Students
Focus on transportation initiatives that directly support learning continuity for students protected under McKinney-Vento, IDEA, or foster care laws. These are strong candidates for ESSER reimbursement.
3. Act Quickly on Procurement
Contracts and services must be obligated before deadlines creep up again. Waiting for additional litigation clarity could mean missing out altogether.
4. Work with Experienced Providers
Look for transportation partners who understand compliance, reporting, and the logistical complexity of serving specialized student populations. Providers should have a proven track record for safety and reliability, paired with the service districts need to coordinate complex transportation requirements.
The unfreezing of ESSER funds is a rare reprieve in a time of tight budgets and high student need. But it comes with a clear message: districts must act quickly, decisively, and equitably. Transportation isn’t just a logistics problem. For many students, it’s the lifeline that connects them to school, stability, and success.
Need help mobilizing ESSER funds for your district’s transportation needs?
Reach out to us to learn how we support specialized transportation for unique student needs.
Morgan Judge is an attorney and regulatory strategist with a rare combination of legislative, legal, and private sector expertise. As Senior Director of Compliance, Regulation, and Policy at EverDriven, she leads government relations and regulatory strategy for a company operating at the intersection of technology, education, and a rapidly evolving policy landscape , overseeing multi-state legislative and compliance initiatives, managing contract lobbyists, and working across teams to advance policies that align with EverDriven’s mission and growth.
Morgan’s foundation in law and policy runs deep. She earned her law degree from Loyola University New Orleans School of Law and gained early experience through legal clerkships researching civil law, criminal procedure, and local government policy. She then spent six and a half years as a nonpartisan staff member in a state legislature, working her way from enrolling clerk to senior projects and calendar manager. In those roles she developed deep fluency in legislative process, parliamentary procedure, and the mechanics of how policy actually gets made, experience that now gives her a distinctive edge navigating state-level regulatory environments on EverDriven’s behalf.
Morgan joined EverDriven in 2021 and has grown steadily within the organization, moving from Regulatory Compliance Manager to Director to her current Senior Director role. She is a visible voice in the student transportation policy community, regularly engaging at national industry conferences and advocating for regulatory frameworks that reflect the realities of modern, technology-enabled student transportation.
