House passes relief package that would send $40B to colleges

by Jeremy

Dive Brief:

Dive Insight:

The bill that passed Friday is unchanged mainly from Biden’s initial proposal. However, it added more direct aid for colleges and enabled private nonprofit institutions to receive funding, which the first proposal did not. The education portions of the bill were also not substantially altered in House co mmittees.


The new round of relief money will be distributed through the same formula as the last major spending bill. It factors in headcount and full-time equivalent enrollment, enabling colleges with more part-time students to benefit.

Institutions that accept their piece of funding must use it in part to implement “evidence-based practices” to mitigate the virus’s spread and conduct outreach to financial aid applicants about the opportunity to have tadjust their aid awards experience new financial hardships.

The U.S. Department of Education has reminded colleges several times of their flexibility to adjust parts of a student’s financial aid application to reflect their circumstances better.

The measure alters the 90/10 rule, which bars for-profit institutions from receiving more than 90% of their revenue from Title IV aid. Military education benefits would now count in that calculation, though they haven’t historically.

Additionally, states that accept elementary and secondary education relief could not disproportionately cut K-12 or postsecondary spending in fiscal years 2022 and 2023.

American Council on Education President Ted Mitchell urged the Senate to quickly take up the legislation in an emailed statement to Higher Ed Dive. While the package is “vital and welcome assistance,” Mitchell said, ACE has identified “at least $97 billion in critical needs left unaddressed” by the last emergency relief legislation, which was approved in December.

Though Republicans have rejected the bill, deeming its price tag too high, it is being shepherded through Congress using a legislative process known as reconciliation. Lawmakers can use it to pass measures in the Senate, which is narrowly divided, with a simple majority, rather than the two-thirds vote that is typically required.

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