The recently passed American Rescue Act (ARA) includes $40 Billion for funding colleges, universities, and community colleges. Additional funding has also been carved out for the Higher Education Emergency Relief Fund II (HEERF II) to the tune of $22.7 billion on top of the previous CARES Act funding of $14 billion.
The ARA expands critical spending flexibility for colleges and universities. ARA funds will be distributed by a formula that considers both full-time equivalent (FTE) enrollment and head count, unlike the CARES Act, which considered only FTE enrollment.
A full $20.2B will be allocated to public and private non-profit institutions of higher education to compensate for lost revenue, reimburse expenses, pay for technology costs associated with shifting to remote education, and make financial aid grants to students.
Here are the parameters set by the U.S. Department of Education for fund usage:
Defraying expenses associated with coronavirus (including lost revenue, reimbursement for expenses already incurred, technology costs associated with a transition to distance education, faculty and staff trainings, and payroll)
Carrying out student support activities authorized by the Higher Education Act of 1965, as amended (HEA), that address needs related to coronavirus
Making additional financial aid grants to students
With increased spending flexibility, the ARA offers your institution new ways to bolster and supplement your curriculum. Struggling with transitioning to distance education? Wondering how you can fully leverage these funds to support your technology costs? We can help.
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