Essential EdTech Strategies for the Post-ESSER Era

The Elementary and Secondary School Emergency Relief (ESSER) Fund, established in March 2020 as part of the CARES Act, was aimed at providing financial relief to schools, allowing them to mitigate the immediate adverse effects of the pandemic on classroom-based education.

Many schools relied on ESSER funding to address learning loss and have actually helped in improving learning outcomes. In fact, in districts that chose to invest this ESSER money specifically in instructional interventions, students’ test scores reflected roughly a month-and-a-half of additional learning time. This phase also drove growth for edtech vendors. EdTech spending rose nearly fivefold from $7.5 billion in 2019 to $36.7 billion in 2021.

Now, the final ESSER spending deadline of January 28, 2025 approaches, after which any unspent funds will be returned to the federal government. Naturally, schools and districts are under increasing pressure to commit and allocate the remaining funds in the coming days. In addition to the use-it-or-lose-it conundrum, they are faced with the challenge of continuity. Schools and districts that have relied heavily on these funds must now navigate how to sustain the advancements they’ve made, especially in the face of dwindling resources. This creates both challenges and opportunities for the edtech sector.

 

The Impact of ESSER Funding (Or the Lack of It) on K-12 EdTech

ESSER funds have been instrumental in driving digital transformation within K-12 education. A significant portion of these funds was allocated to edtech investments, enabling schools to rapidly upgrade their technology infrastructure. Districts purchased devices like laptops and tablets for students, expanded internet access for underserved communities, and deployed learning management systems (LMS) to support remote and hybrid learning.

These investments were crucial in maintaining the continuity of education when physical classrooms were closed during the pandemic. Reports estimated that 92 percent of local schools used ESSER funds to buy hardware like Chromebooks, software, and internet connectivity tools to continue instruction during the pandemic. The rising cost of basic tools like Microsoft Office has significantly increased with companies no longer offering pandemic-era pricing breaks, districts must make tough financial decisions about which tools to keep as relief funding runs out.

Schools rapidly adopted learning platforms that provided digital curricula and tools to facilitate both remote and hybrid learning models. Platforms offering personalized learning experiences, gamified education, and data-driven analytics saw increased adoption, with schools leveraging their newfound financial flexibility to experiment with advanced solutions.

Without continued federal support, schools’ tech purchasing is coming to normal levels. With many schools returning to in-person, there has been a sharp decline in the use of bonus resources. This means that the edtech industry that took off during the pandemic is now coming down.

 

What Will the Post-ESSER Landscape Look Like

As ESSER funds near their expiration, both districts and edtech companies must strategically plan for a sustainable future. One essential shift involves moving from one-time technology investments to scalable, long-term solutions. EdTech companies should offer affordable subscription-based options—such as learning management systems and content libraries—that alleviate financial pressures on districts no longer supported by ESSER. Subscription models ensure that schools can continue using vital tools without the need for large upfront investments.

Additionally, AI-driven tools present a critical opportunity, as they can reduce costs while improving personalized learning experiences. These adaptive learning solutions provide a strong case for continued district investments, even as funding sources shift.

To minimize extra costs, edtech companies should prioritize platforms that integrate seamlessly with existing school systems, allowing schools to avoid the financial burden of implementing new technology. Offering solutions that are compatible with current systems can help edtech companies position themselves as cost-effective, easy-to-implement partners in the post-ESSER landscape.

 

Adapt Your Offerings to Post-ESSER Schools’ Needs

As budgets tighten in the post-ESSER era, edtech companies must adapt their offerings to meet the evolving needs of schools. This can be accomplished by creating scaled-down versions of flagship products or offering customized solutions, allowing districts to invest in only the features they need most. For example, schools may prioritize core academic areas such as literacy and math, while reducing access to other functionalities.

To support districts with reduced budgets, exploring flexible models like bundling or “freemium” offerings can make it easier for schools to adopt new technologies without significant upfront costs. Flexible pricing models are crucial, as they allow schools to continue accessing important resources without compromising on quality. EdTech companies should focus on delivering solutions that not only support academic outcomes but also streamline administrative tasks, providing long-term value to both schools and districts.

Collaboration between edtech providers and districts is critical in the post-ESSER landscape. By working closely with schools, companies can offer comprehensive teacher training that maximizes the use of digital content. Effective training will help bridge any gaps in technology use and ensure that schools can fully leverage their investments.

Additionally, edtech providers should focus on addressing fundamental educational challenges such as learning recovery, personalized instruction, and advanced data analytics. These tools allow schools to make informed decisions about student progress and provide tailored learning experiences. By aligning their solutions with these core challenges, edtech companies can make a compelling case for continued investment in technology, even with diminished funding.

As schools prepare for the loss of ESSER funding, they are focusing on how to maintain essential services and continue delivering high-quality education. Many districts are prioritizing budget reallocations, rethinking technology investments, and seeking partnerships with edtech companies to support sustainable long-term strategies. In this changing landscape, innovation, adaptability, and partnerships are more important than ever. EdTech companies that remain flexible and responsive to the shifting needs of schools—by offering scalable solutions, adaptive pricing models, and collaborative support—will be best positioned to maintain their market presence.