The COVID-19 pandemic reshaped K-12 education in profound and enduring ways. Classrooms closed abruptly, remote learning was hastily implemented and educators found themselves navigating a rapidly evolving landscape of challenges. To mitigate the fallout, federal COVID-19 relief funding provided school districts with crucial support during this time of crisis. As those funds are set to expire, the focus has shifted to understanding their impact and addressing the challenges that remain.
L.E.K. Consulting’s survey of nearly 200 K-12 district administrators sheds light on how districts used relief funds, the effectiveness of their strategies and the critical issues that persist. The findings reveal that K-12 education is at a turning point, trying to maintain hard-won progress while grappling with complex, long-term challenges.
Relief funds as a temporary lifeline
Based on responses from school leaders, at the peak of the pandemic’s impact, during the 2021-2022 academic year, COVID-19 relief funding accounted for, on average, 18% of school district budgets, most often covering instructional support, infrastructure improvements, personnel benefits and student mental health initiatives. By the 2024-2025 academic year, the average contribution from relief funds has declined to 8%, with 39% of school district administrators expecting the budget to increase in the next academic year, and 47% anticipating further budget reductions due to the expiration of ESSER funding.
District administrators widely acknowledged the value of these funds, with 65% describing their use as “very” or “extremely” effective in meeting the needs of students and staff. With the benefit of hindsight, 57% admitted that, if they had to do it over again, they would allocate the funds toward student mental health and instructional support.
Unequal impact and the deepening of inequities
The pandemic impacted student populations disproportionately, with students from low-income families and underrepresented racial and ethnic groups experiencing the greatest disruptions. Chronic absenteeism nearly doubled, math scores plummeted and mental health concerns — especially anxiety — surged.
These inequities underscored pre-existing gaps in the education system, which have become priorities for district leaders. Many administrators identified mental and behavioral support (27%) and academic interventions (23%) as critical needs, followed closely by special education services (21%). Students from disadvantaged backgrounds remain at the center of these efforts, as districts strive to close widening achievement gaps while addressing the root causes of systemic inequities. However, the new NAEP report cards show that 2024 reading scores for the bottom quartile have declined between 2022 and 2019, while those for the top quartile have remained stable.
Workforce challenges and teacher shortages
The pandemic also exacerbated an already tenuous situation for the K-12 workforce, as 300,000 public school staff left the field by mid-2022. Nearly 90% of district administrators reported negative impacts on their ability to retain and recruit teachers. Certain subject areas — STEM, special education and foreign languages — faced acute shortages, making it difficult for districts to meet the needs of their students. High turnover combined with an increase in teacher shortages placed additional strain on districts, particularly those in rural or low-income areas, as they competed for talent against better-resourced counterparts.
To address these challenges, districts are increasing salaries and benefits, partnering with local universities to establish teacher pipeline programs, and expanding professional development opportunities. Despite these efforts, the path to a stable and well-supported workforce remains fraught with obstacles, particularly as financial resources become scarcer.
The looming expiration of relief funding
The expiration of COVID-19 relief funding presents a significant financial challenge for K-12 districts. Although 59% of district administrators reported having plans in place to offset the expected shortfall, the strategies outlined — cutting spending and seeking other sources of funding — present their own challenges.
Instructional support has emerged as the highest budget priority, followed by support for students’ behavioral/emotional needs and mental well-being. Preserving these priorities often requires trade-offs, such as reducing spending on personnel, infrastructure and technology.
Uncertainty surrounding future funding sources compounds the problem as state and local support may not fully offset the loss of federal relief dollars. Low-income and rural districts face particularly steep challenges, as they typically have less access to alternative funding streams.
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