State and Local Educational Agencies’ Use of Digital Wallet-Related Technologies and Services

We performed this review to determine the extent to which State Education Agencies (SEAs) and local educational agencies (LEAs) use digital wallets to facilitate the administration of U.S. Department of Education (Department) grant funds. Our review covered the period from October 1, 2022, through December 31, 2024.  Forty-five SEAs responded to our survey regarding the use of digital wallets to facilitate the administration of Department grant funds. Twelve of those SEAs reported using digital wallets to help administer some of their Department grants during our review period, and three of these planned to continue using digital wallets in 2025. SEAs primarily relied on one digital wallet vendor to help administer their Department grant funds. That vendor, used by 11 of the 12 SEAs, was responsible for helping to administer more than 95 percent of the Department grant funds for which SEAs reported using digital wallets. SEAs used digital wallets almost exclusively for their pandemic relief Department grants, including the Governor’s Emergency Education Relief Fund, Emergency Assistance to Non-Public Schools grants, and Elementary and Secondary School Emergency Relief Fund grants. SEAs most commonly used digital wallets for automated direct deposit reimbursement or payment, built in controls for fund use, and tracking of funds; and several SEAs reported that they relied, at least partially, on their digital wallet vendors to help ensure that applicable Federal grant requirements were followed. According to the SEAs that responded to our survey, a small number of LEAs used digital wallets to help administer their Department grant funds during our review period. Only one SEA reported that its LEAs used digital wallets, and that SEA further reported that only 5 to 10 LEAs in the State used digital wallets. Although LEAs’ use of digital wallets appeared to be limited based on the survey results, the full extent of LEAs’ digital wallet usage is not known since 6 SEAs did not complete the survey and 15 of the 45 respondent SEAs reported that they did not know whether their LEAs used digital wallets to help administer Department grant funds.