After months of uncertainty, Texas school districts can once again access unspent federal COVID-19 relief funds—but they’ll need to act fast.

In late June, the U.S. Department of Education reversed an earlier decision that had effectively frozen billions of dollars in remaining pandemic aid. The abrupt freeze, announced in March 2025, eliminated the 15-month grace period on which many districts were relying to finish using their ESSER III and related grant funds. That decision left Texas and many other states scrambling to pause projects, delay payments, and even lay off staff.

Now, the Department has restored the original spending deadline of March 2026 for all states, including Texas. The reversal comes after 16 states and Washington, D.C.—not including Texas—successfully sued the Department for unfairly cutting off access to approved funds. In a letter to state leaders, Education Secretary Linda McMahon acknowledged that the department’s previous approach created inconsistent rules that disadvantaged states that didn’t sue.

Relief Is Back—But So Is the Deadline

Texas districts now have a renewed opportunity to use their remaining COVID-era funds for student-centered programs and services. But there’s still a level of risk:

• March 2026 is the new (old) deadline—but it could be shortened again depending on how ongoing lawsuits unfold.
• Delays could be costly. Districts should act quickly to avoid being caught off guard if rules change again.
• Not all expenses are guaranteed. Facilities upgrades and professional development are facing increased scrutiny for reimbursement.

The Department of Education has also indicated that it may request more documentation or deny late-spending reimbursements that don’t clearly align with COVID-related objectives.

What This Means for Student Transportation in Texas

Transportation continues to be a critical link between students and the classroom—and pandemic-era funding helped many Texas districts bridge gaps in traditional bus service.

With the reinstated deadline, districts now have a fresh opportunity to:

• Fund alternative transportation services for students experiencing homelessness, living in foster care, or receiving special education
• Cover extended routes, flexible scheduling, or safety-related enhancements that support learning recovery and attendance
• Keep high-need students connected to school with dependable transportation options that respond to pandemic-related disruptions

To qualify, expenses must be clearly connected to the purpose of pandemic funding—addressing challenges created or worsened by COVID-19, like chronic absenteeism or lack of equitable access.

“We know that funding uncertainty has made planning difficult for districts across the country. Now that the timeline has been restored, we’re working closely with school leaders to help them make the most of these remaining funds—especially for students who depend on flexible, reliable transportation to access their education.” — Danielle Press, Chief Growth Officer, EverDriven

Recommended Resources for Texas School Leaders

• U.S. Department of Education official notice
• U.S. Department of Education FAQs
• Texas Education Agency’s ESSER Forms, Resources, and Training

Act Now—This May Be the Last Window

For Texas schools, this policy change brings temporary stability—but the window to spend is short, and the risk of further disruption still looms.

Districts should:

• Revisit their ESSER III spending plans
• Prioritize high-impact projects tied to student outcomes
• Document connections to pandemic recovery clearly and thoroughly

Whether it’s a tutoring initiative, mental health support, or flexible transportation services, now is the time to finish what was started.

Morgan Judge

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.