The federal government appropriated $189.5 billion in pandemic aid to school districts through the Elementary and Secondary School Emergency Relief (ESSER) fund. This study evaluates 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.
The authors find no evidence that additional funds mitigated the declines in test scores. They 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.
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