Senate Approves New $2T COVID-19 Relief Package
Last night, the Senate passed 96-0 the third COVID-19 relief bill. Speaker Pelosi has indicated that the legislation will likely receive broad bipartisan support when it is consider in the House on Friday.
The $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act includes support for individuals and specific sectors of the economy impacted by the COVID-19 crisis. Within the higher education section, approximately $14.2 billion is allocated to an education stabilization fund that will be distributed by the Department of Education to colleges and universities largely (90%) utilizing a formula that accounts for overall student (weighted 25%) and Pell Grant (weighted 75%) populations. Institutions will be required to allocate 50% of funding received to emergency student financial aid. Additionally, $3 billion will be given to governors by formula for allocation at their discretion to institutions of higher education and/or local education agencies. The bill provides Federal research agencies with resources to address COVID-19 related needs.
The CARES Act provides flexibility to institutions and students for use of Federal student financial aid (e.g. Pell, Work Study, Supplemental Educational Opportunity Grant) programs. The bill also suspends Federal student loan repayment and interest accrual for 6 months.
Recognizing that the CARES Act will not come close to addressing COVID-19 impacts, leaders on the Hill have characterized it as the latest in a series of steps that they will take to deal with the crisis. Following the House vote tomorrow, attention will turn to the development of a fourth emergency supplemental spending bill. FSU Federal Relations will continue to work with the national higher education associations and Florida colleges and universities to share COVID-19 impacts and needs with Congress.
Additional details on the CARES Act are provided below. Please let us know if we can be of assistance.
APLU Analysis of the CARES Act