ARP Local Maintenance of Equity Requirement (MOEquity)

Local maintenance of equity (MOEquity) is a federal fiscal requirement that applies to all local educational agencies (LEAs) that receive funding under the grants authorized by the American Rescue Plan Act of 2021 (ARP), including the following:

  • 2020–2023 ARP ESSER III
  • 2021–2023 ESSER Supplemental (ESSER-SUPP)
  • 2021–2024 Texas COVID Learning Supports (TCLAS)

The intent of this requirement is to ensure that LEAs and campuses that serve a large share of students from low-income backgrounds do not experience a disproportionate reduction in funding in fiscal years 2022 and 2023 (FY22 and FY23), that is, school years 2021–2022 and 2022–2023.

In addition, MOEquity is designed to ensure that LEAs serving the largest shares of students from low-income backgrounds do not receive a decrease in state funding below their FY 2019 level.

MOEquity Guidance Handbook

Refer to the MOEquity Guidance Handbook for a detailed description of the following:

  • The MOEquity statutory requirement
  • Compliance with the requirement
  • Exemption criteria and USDE waiver from the requirement
  • Methods of documenting compliance
  • Instructions on calculating equity with the MOEquity Tool (available through TEAL)


As described below, LEAs must submit the following to TEA by December 3, 2021:

LEAs that choose to calculate equity with the MOEquity Tool must submit the completed tool via TEAL by December 10, 2021.

MOEquity Compliance: Automatically Exempt LEAs

MOEquity applies to recipients of ARP grant funding. Under ARP, certain LEAs are exempt from the requirement.

Using LEA data submitted on the SC5000 schedule of the ESSA Consolidated Federal Grant Application, TEA has compiled a list of LEAs that are automatically exempt from MOEquity:

If your LEA has been included or excluded from the “automatically excluded” list due to a data reporting error, you must notify the Federal Fiscal Compliance and Reporting Division, at, by December 3, 2021, to correct the error.

LEAs that qualify for automatic exemption from MOEquity are not required to take any further action to meet this requirement.

LEAs Not Automatically Exempt

All LEAs that are not automatically exempt from MOEquity are required to submit documentation to TEA to indicate their chosen method for meeting the requirement. Three methods are available:

  • USDE waiver
  • Self-certification
  • Calculation of equity

The LEA notifies TEA of its chosen method by completing and submitting the MOEquity Document Submission Plan.

Refer to the MOEquity Guidance Handbook for a description of the three methods and instructions on completing the required plan.

For all LEAs that are not automatically exempt, the deadline for submitting the MOEquity Document Submission Plan is December 3, 2021.

TEA Training

Online MOEquity training sessions will be announced via GovDelivery. To sign up for bulletins, visit the Sign Up for Updates page of the TEA website and select the Grants option when prompted.

TEA Resources

Answers to frequently asked MOEquity questions are listed in the ESSER FAQ. The FAQ will be updated regularly. Use the ESSER FAQ Submission form to submit new MOEquity questions to TEA staff. 

The following MOEquity resources have also been developed by TEA:

Federal Resources

USDE will post all MOEquity resources on its website as they become available.