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IT Infrastructure & Management

Federal Ed-Tech Dollars Are Running Out. What Happens Next?

By Alyson Klein 鈥 January 14, 2025 2 min read
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School districts dramatically expanded their technology investments during the global pandemic, thanks to $122 billion in emergency federal funding that allowed them to purchase devices, connectivity, and learning software.

Now that the money has been spent, only about a quarter of state tech officials say their states plan to provide funding to the technology initiatives bankrolled by federal pandemic relief funding, according to a conducted on behalf of the State Educational Technology Directors Association last spring. That might mean that hardware bought during the pandemic won鈥檛 be replaced or refurbished.

The data point was cited in a , released Jan. 14, that outlines recommendations for policymakers to ensure all children have access to digital learning tools.

The report also noted that about another quarter of survey respondents鈥27 percent鈥攕aid that their states had not made plans to continue the initiatives. About half of respondents were unsure.

That leaves a potential yawning gap in unmet need, particularly given that an overwhelming majority of school districts鈥92 percent鈥攕pent at least part of their pandemic federal relief dollars on technology, the report notes.

In fact, 26 percent of survey respondents listed funding as the biggest unmet technology need in their state, a jump from last year鈥檚 survey in which 22 percent of respondents said the same.

鈥淭hose short-term [funding] solutions put forth through the pandemic, they definitely did help, don鈥檛 get me wrong, but it鈥檚 what led to us being in the state that we鈥檙e in right now,鈥 Ji Soo Song, the director of projects and initiatives at SETDA, said in an interview.

The survey results underscore the need for a 鈥減ermanent mechanism to address the affordability challenge [to ensure] long-term equity in K鈥12 education,鈥 the report says.

School tech investments will have to compete with other priorities

The lack of clear state support to continue pandemic technology initiatives represents 鈥渁 big warning sign, a big red flare,鈥 said Keith Krueger, the executive director of the Consortium for School Networking, an organization that represents school district technology leaders.

Going forward, technology is going to be 鈥渋n competition for [state dollars] with other things like educator recruitment and retention, teacher professional development, social-emotional learning,鈥 Krueger said.

The ongoing need could be compounded if the Supreme Court rules that the financing mechanism behind the E-rate program鈥攚hich provides some $2 billion a year for connectivity at schools and libraries across the country鈥攊s unconstitutional, Song added.

If the court rules against the program, SETDA would like to see Congress commit to finding an alternative to continue E-Rate and other programs currently financed through fees on certain telecommunications services.

And SETDA wants federal legislation to create a nonprofit foundation to spur public and private investments to improve digital equity and digital literacy. A bill was introduced in the previous congressional session, but did not pass.

As a shorter-term solution to families鈥 connectivity headaches, the report recommends lawmakers consider legislation providing $6 billion to extend the Affordable Connectivity Program, which helps more than 23 million households cover broadband costs. A last session by Sen. Ben Ray Luj谩n, D-N.M., and has the support of former Sen. JD Vance, R-Ohio, the incoming vice-president.

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