Ed Dept gives colleges more flexibility to use federal relief funds

by Jeremy

Dive Brief:

Dive Insight:

Former President Donald Trump signed the Coronavirus Response and Relief Supplemental Appropriations Act in late December, making roughly $23 billion in postsecondary education aid available.

This followed $14 billion in the first round of higher education relief. Higher ed groups have said at least $120 billion is necessary to help the sector address the pandemic’s financial impact.

The Trump administration limited the second funding wave to costs incurred beginning in late December. But the Education Department’s guidance released Friday states that institutions can use the money for lost revenue or expenses that date far back as March 13, 2020, when Trump declared a national emergency over the spreading coronavirus.

The agency also released an FAQ Friday describing what constitutes “lost revenue” and how colleges can calculate that amount. In that document, the department “strongly” recommended colleges devote the maximum amount of aid possible to emergency grants for students who the pandemic has disadvantaged. The department’s directive makes clear colleges can use the funds to eliminate students’ debt to institutions.

Related Posts

Leave a Comment