Microgrants: What’s Next?

Arizona, Idaho, Indiana, Kansas, Nebraska, Ohio, Oklahoma, Texas, Virginia
Opportunity

It’s National School Choice Week 2022, and we’ve been hearing a lot of fabulous suggestions on how to build on the momentum of 2021, the Year of Choice. But I’ve also been closely following another story unfolding in districts across the U.S.

It’s a story about the massive amount of federal money that was sent to the nation’s schools in the past two years and a question that parents are asking. They want to know, “Where exactly did that money go?” Unfortunately, in some communities, parents report a lack of transparency around how money meant for teachers and students is being spent.

This problem doesn’t exist everywhere. Using the first round of federal funds in 2020, governors in Oklahoma, Idaho and Texas put a portion of their Elementary and Secondary School Emergency Relief (ESSER) funds in the hands of parents. They gave them microgrants, money that parents could direct to state-approved educational goods and services for their children. Parents clamored for these funds; Idaho’s system was overwhelmed with applicants when it launched. Because parents could see federal stimulus funds put to use, these first microgrant programs were highly transparent and empowering.

Since 2020, other governors and legislatures have followed suit. Kansas and Ohio will launch their own microgrants soon, using federal stimulus funds. Arizona, Nebraska, Indiana and Virginia have microgrant proposals pending. And the original microgrant states continue to see value in their programs. Texas has made its Supplemental Special Education Services (SSES) microgrant permanent, and other states may soon follow its lead.

Why are microgrants increasing in popularity? Polls find that parents want more choices, and microgrants are a win for policymakers and local school districts. Especially now, when localities are experiencing teacher shortages coupled with huge pressure to help students recover learning lost during the pandemic, microgrants can be a win-win: They allow parents to leverage outside providers to help students catch up or get ahead without leaving their local school district. Teachers and school leaders, in turn, can rest assured that students are getting more of what they need, even if the district can’t be the one to meet every student’s needs at this time.

What does it take for a state or locality to start a microgrant program? A little research and trust that parents know their children best. States or districts can target microgrants to families who live below a certain income level or offer them to all students. They can stand up a digital platform that allows parents to apply, receive approval and then use money in a jointly managed account to purchase a range of services from a range of providers that the state has curated and vetted. In states with existing programs, these services include options such as online courses, digital access, tutoring, special educational therapies and the like.

To date, microgrant programs have made one-time-only awards to parents. But I envision a future in which every family, every year, gets a small portion of their child’s state education allocation to direct toward the customized academic and supplemental services that the child needs. Coupled with innovative policies like part-time enrollment, this kind of parent-directed spending could one day be commonplace.

During this National School Choice Week, let’s reflect on the good stuff and keep up the school choice momentum. Microgrants put power in the hands of parents and help kids access the opportunities they need.

Solution Areas:

Private Education Choice, Public Education Choice

About the Author

Cara Candal, Ed.D., is the Vice President of Policy for ExcelinEd.