Intergovernmental Grants to School Districts and Educational Outcomes During the COVID-19 Pandemic

Jeffrey Clemens, Philip G. Hoxie and Stan Veuger

No 35447, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The federal government appropriated $189.5 billion in pandemic aid to school districts through the Elementary and Secondary School Emergency Relief (ESSER) fund. We evaluate their impact on schools with district poverty shares near 5%, where a threshold-driven increase in funds enables us to implement a difference-in-discontinuities design. Federal funds were passed on to residents through reductions in local revenue collections, including property taxes, and did not result in increased per-pupil expenditures by school districts. We find no evidence that additional funds mitigated the declines in test scores. We provide suggestive evidence that political engagement, especially from parents, increased in districts that qualified for additional funds. This combination of engagement and reduced taxation may explain the greater enrollment and faster reopening we observe in such districts.

JEL-codes: H71 H72 I22 (search for similar items in EconPapers)
Date: 2026-07
Note: ED EH LS PE
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