CAARO Update Issue #2026-09
July 20, 2026: Categorical Allocations and Audit Resolution Office (CAARO) Updates – twice monthly notifications of key reporting deadlines, applications for funding, annual audits, and any other topics related to programs administered by CAARO.The purpose of the California Department of Education (CDE) CAARO updates is to provide local educational agencies (LEAs) and other interested parties with timely information related to programs administered by CAARO.
To subscribe, send a blank e-mail to subscribe-caaro-updates@mlist.cde.ca.gov.
Key Dates
| Description | Dates |
|---|---|
Fiscal Year 2026-27 Reporting Window for Consolidated Application and Reporting System (CARS) Application for Funding Page opened on May 1 and will close on December 15, 2026. |
5/1/2026 - 12/15/2026 |
Federal Cash Management Data Collection (CMDC) opened on July 10 and will close on July 31, 2026 |
7/10/2026 - 7/31/2026 |
Grant Management and Reporting Tool (GMART) opened on July 1 and will close on July 31, 2026 |
7/1/2026 - 7/31/2026 |
Federal Categorical Program Updates
Categorical Programs - Allocations & Apportionments
Title I, Title II, Title III, and Title IV
- The fiscal year (FY) 2026–27 state budget bills have been chaptered.
- The Final State Reservation Tables for FY 2026–27 was received by CDE on June 26, 2026.
- Preliminary LEA Eligibility amounts, posted for FY 2026–27, are currently being adjusted to reflect changes in the federal grant awards provided by the US Education Department (ED). See the table below for updated grant award amounts for each ESSA program and changes from prior year grant.
| Program | FY 2025–26 Final from ED | FY 2026–27 Final from ED | Difference |
|---|---|---|---|
| Title I, Part A | $2,269,376,787 |
$2,319,629,390 |
$50,252,603 |
| Title II, Part A | $230,699,644 |
$230,667,172 |
-$32,472 |
| Title III, Part A | $152,386,811 |
$146,640,997 |
-$5,745,814 |
| Title IV, Part A | $164,576,968 |
$166,962,711 |
$2,385,743 |
- To receive an allocation, a local educational agency (LEA) must submit a State Board of Education (SBE) approved CARS Consolidated Application for Funding (ConApp) and an approved local control and accountability plan (LCAP) Federal Addendum by 12/15/2026.
- LEAs with an approved CARS ConApp and an approved LCAP Federal Addendum by July 24, 2026, and reported cash balances by July 31, 2026, will be eligible for payments in Q1, which will be released to LEAs in September 2026.
- LEAs will be able to report cash balances through CMDC from 10, 2026 to July 31, 2026.
- The obligation period for FY 2024–25 ESSA Title I–V funds will close on September 30, 2026. After the obligation period closes, LEAs have one final opportunity to report cash balances which will be followed by the tenth and final apportionment. LEAs will forfeit any balances after the tenth apportionment.
- To review FY 2024–25 remaining balances please refer to the schedule under “Allocations” on the “Funding Results” page. Links to the Funding Results page for each program are provided in the table below.
| Programs | Links |
|---|---|
| Title I, Part A | Funding Results: Title I, Part A, Fiscal Year 2024-25 |
| Title I, Part D, Subpart 2 | Funding Results: Title I, Part D, Subpart 2, Fiscal Year 2024-25 |
| Title II, Part A | Funding Results: Title II, Part A, Supporting Effective Instruction, Fiscal Year 2024-25 |
| Title III, English Learner | Funding Results: Title III English Learner Student Program, Fiscal Year 2024-25 |
| Title III, Immigrant | Funding Results: Title III Immigrant Student Program, Fiscal Year 2024-25 |
| Title IV, Part A | Funding Results: Title IV, Part A, Student Support and Academic Enrichment, Fiscal Year 2024-25 |
Title V
- The Grant Award Notification (GAN) for FY 2026–27 was received by CDE on July 1, 2026.
- Title V does not have a State Reservation Table. The table below compares the prior year’s GAN to the current year’s GAN and indicates whether the total state allocation increased or decreased.
| Program | FY 2025–26 GAN | FY 2026–27 GAN | Difference |
|---|---|---|---|
| Title V, Part B | $5,796,318 |
$7,263,577 |
$1,467,259 |
Title I, Part A (FY 2025–26) – 85% Obligation Reminder
- LEAs are approaching the end of the 15-month obligation period for FY 2025–26 Title I, Part A funds. Section 1127 of the ESSA allows LEAs to carry over no more than 15 percent of their Title I, Part A allocations, excluding funds received through any reallocations under Section 1126(c) of the ESSA, for one additional fiscal year, unless they receive a waiver from the CDE or the total allocation is less than $50,000. Annually, the CDE reviews the amount of Title I, Part A carryover funds for each LEA and issues an invoice to LEAs that exceed the carryover limit and do not receive a waiver.
- Under the FY 2024–25 allocation, 19 LEAs were subject to carryover limitations and were required to return excess carryover funds.
- LEAs with excess carryover funds reflected in their remaining FY 2024–25 balance will retain the balance in the Allocation Schedule; however, no additional apportionments will be issued from FY 2024–25 funds.
- LEAs that have already received apportionments that include excess carryover funds will receive an invoice and must return the excess amount to the CDE.
- If you have any questions, please contact the Title I, Part A office by email at TIMSO@cde.ca.gov.
Comprehensive Support and Improvement (CSI) LEA
- The obligation period for the 2024-25 CSI grant ends on September 30, 2026. LEAs must expend or obligate funds by this date and liquidate funds within 90 days. The Final Grant Management Report (GMR) 5 and Subgrant Evaluation will be due to the CDE by October 15, 2026.
- The CSI Grant Management and Reporting Tool (GMART) is currently open for 2024-25 GMR 4 and 2025-26 GMR 1 expenditure reporting. Reporting closes on July 31, 2026.
- If you have any questions regarding this program, please contact the School Improvement and Support Office (SISO) by email at SISO@cde.ca.gov.
State Categorical Program Updates
Categorical Programs - Allocations & Apportionments
Classified School Employee Summer Assistance Program (CSESAP)
- School districts and county offices of education that elected to participate in the Classified School Employee Summer Assistance Program (CSESAP) for the 2025–26 school year must request payment from the California Department of Education (CDE) by July 31, 2026. The web-based reporting application to make this notification will be available from June 22, 2026, through July 31, 2026, on CDE’s CSESAP notification web page.
- Please ensure that the amount requested for the “Total Amount of Pay Withheld from Participating Classified Employees for the 2025–26 School Year” equals the total amount withheld during the 2025–26 school year from eligible participating classified employees in accordance with the classified employees’ election choices. LEAs must not request a prorated amount or the amount paid to employees. The total amount requested statewide will exceed the amount appropriated in the state budget, and the CDE will prorate the amounts requested accordingly.
- The final state match amount will be based on the amounts requested by LEAs through July 31, 2026, and the final amount will be available in August 2026, on the CSESAP Funding Results web page.
- If you have any questions regarding this program, please contact the Categorical Allocations and Audit Resolution Office by email at csesap@cde.ca.gov.
Literacy Instruction Professional Development
- CAARO received the full-time equivalent (FTE) certificated staff data to calculate the allocations for the Literacy Instruction Professional Development funding that was provided in Section 83 of Assembly Bill 121 (Chapter 8, Statutes of 2025). The allocations will be posted in July, with the apportionment to be released by late September 2026.
- Funding is available to school districts, county offices of education, charter schools, and state special schools to support the implementation of California Education Code (EC) Section 33319.6
. Funds will be allocated on an equal amount per FTE certificated staff who provide literacy instruction to pupils in transitional kindergarten, kindergarten, or any of grades 1 to 5, inclusive, using the data submitted through the California Longitudinal Pupil Achievement Data System (CALPADS) as of October 2025. - Information regarding the program timeline, reporting requirements, and professional development criteria is available on the CDE’s Literacy Professional Development Programs web page. Details regarding the funds will be available on the CDE’s Categorical Programs web page.
Lottery
- The 3rd Quarter apportionment for 2025–26 was released by the State Controller’s Office at the end of June. For more information, please refer to the 3rd Quarter Lottery Apportionment letter.
- The 4th Quarter estimated accrual for 2025–26 and revenue projections for 2026–27 will be available by mid-July when details from the Lottery Commission become available. Details will be posted on the CDE’s Lottery web page
Mandate Block Grant
- The 2026–27 Mandate Block Grant Application will be open by July 31, 2026. The deadline to request funding is August 30, 2026. More information will be posted on the CDE’s Mandate Block Grant web page when it becomes available.
Coming Soon: New State Programs in 2026-27!
- Stay tuned for the next update when CAARO will provide a list of available funding for LEAs in fiscal year 2026–27.
Questions:
Categorical Allocations & Audit Resolution Office | CAAR@cde.ca.gov
Last Reviewed: Monday, July 20, 2026
Trending in Allocations & Apportionments
Recently Posted in Allocations & Apportionments