ARP-HCY

Maximize Final ARP-HCY Funds: Quick Spending and Cost Guide

This resource is designed to guide state and local educational agencies in effectively utilizing the ARP-HCY funds. It organizes allowable uses of ARP-HCY funds by relative cost, categorized into high cost, medium to high cost, and lower cost options.

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American Rescue Plan Homeless Children and Youth, or ARP-HCY funds, are one-time uniquely flexible funds to support the identification, enrollment, and school participation of children and youth experiencing homelessness, including through wrap-around services. These funds must be obligated by September 30, 2024, and spent by January 31, 2025, unless states apply and are approved for extended liquidation. Under extended liquidation, ARP-HCY funds must be obligated by September 30, 2024, but can be spent through March 2026[1]. In reviewing activities, we encourage SEAs and LEAs to consider how ARP-HCY funds may be used to support back-to-school activities for the 2024-2025 school year.

The table below organizes allowable uses of ARP-HCY funds by relative cost to help state and local educational agencies make the most of this historic opportunity. In determining use of funds, LEAs should consider 1) how much ARP-HCY funding remains; 2) whether the state is planning to apply to the U.S. Department of Education for extended liquidation; and 3) whether other funds, such as McKinney-Vento Education for Homeless Children and Youth (EHCY) funds, and funds that LEAs are required to reserve for homeless students under Title I Part A – may be used to sustain activities. Please refer to the U.S. Department of Education’s guidance on ARP-HCY funds for additional parameters on allowability.

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[1]  In February 2024, the U.S. Department of Education announced that SEAs would be able to apply for extended liquidation of ARP-HCY funds. If a state education agency applies and is approved for ARP-HCY extended liquidation, LEAs would have up to 14 additional months to draw down or liquidate ARP-HCY funds, if those funds were obligated by the September 30, 2024 deadline. Homeless liaisons should direct questions about their state’s extended liquidation process to their state homeless education coordinator