Here is what you need to know: ESSER funds Elementary and Secondary School Emergency Relief is three federally funded stimulus packages that are largely distributed based on a districtâs Title 1 formula. Schools are given the funding to address their COVID-19 related expenses and learning loss. What is Title 1? The federal government distributes over $14.5 billion a year to states and schools for their underprivileged students. The basic formula allocates funds to schools based on the number of lower income students. A district qualifies for this if at least 10 children and 2 percent of the student body lives below the poverty line.