Overview
Title
Clarification on Reopening the Application Period for Certain Applicants Under the Higher Education Emergency Relief Fund (HEERF), Sections 18004(a)(1), 18004(a)(2), and 18004(a)(3); Coronavirus Aid, Relief, and Economic Security (CARES) Act
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ELI5 AI
The government is telling everyone that new rules mean they can't take or look at new requests for certain school money programs from an old law, but they might still give out other types of school money until a certain date, and they'll explain more about new ways to get money later.
Summary AI
The Department of Education announced that the Consolidated Appropriations Act, 2021, overrides a previous notice that reopened the application period for certain grants under the Higher Education Emergency Relief Fund (HEERF) from the CARES Act. This new law prohibits accepting or processing new applications for the “Student Aid Portion” and “Institutional Portion” programs. However, applications are still being accepted for other HEERF programs under specific conditions until January 11, 2021. The department will provide further guidance on new funding opportunities created by the 2021 Appropriations Act at a later date.
Abstract
The Secretary is providing notice that the newly-enacted Consolidated Appropriations Act, 2021 (the 2021 Appropriations Act) supersedes the Department of Education's (Department's) notice published in the Federal Register on December 23, 2020, that reopened the HEERF grant program application period for certain limited applicants (Reopening Notice). The 2021 Appropriations Act prevents the Department from accepting or processing any applications for new awards under section 18004(a)(1) of the CARES Act (i.e., the "Student Aid Portion" program (Catalog of Federal Domestic Assistance Number (CFDA) 84.425E) and the "Institutional Portion" program (CFDA 84.425F)).
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Summary of the Document
The document from the Federal Register, published by the U.S. Department of Education, announces that new appropriations legislation, known as the Consolidated Appropriations Act, 2021, has overruled a prior notice from December 2020. This prior notice had reopened the application period for specific grants under the Higher Education Emergency Relief Fund (HEERF) outlined in the CARES Act. The new legislation halts the acceptance or processing of any new applications for certain funding categories, specifically the “Student Aid Portion” and the “Institutional Portion.” However, it allows applications for other HEERF programs under certain conditions until January 11, 2021. Future guidance will be provided on how newly available funds under the 2021 Act can be accessed.
Significant Issues and Concerns
This notice raises several issues and potential concerns. First, the document refers to "limited applicants" who were eligible under the previous reopening of applications but does not clarify who these individuals are, which could lead to confusion among potential applicants.
Moreover, there is no clear explanation of how the funding reallocations will occur according to the 2021 legislation. This lack of detail might concern stakeholders focused on financial transparency and accountability in government spending.
Additionally, the notice does not offer insight into any appeal process for those who may have submitted applications before the December 27, 2020, cut-off but are now ineligible. This omission could be perceived as unfair to those applicants who acted in good faith based on earlier guidance.
The document also mentions that applications can still be submitted under certain conditions specified in the Reopening Notice, but it does not detail these criteria, leaving readers uncertain about the eligibility requirements.
Furthermore, terms like "unobligated funds" may not be clear to all readers, particularly those unfamiliar with specific budgetary terminology.
Impact on the General Public
Broadly, this document indicates a shift in how federal aid funds may be accessed by educational institutions, which could affect financial planning for many schools and universities relying on this aid support. Students attending institutions that expected funds through the halted programs might face uncertainties regarding financial assistance.
Impact on Specific Stakeholders
For educational institutions and applicants that planned to access the now-suspended funds, the notice represents a significant administrative and financial roadblock. These organizations might need to seek alternative funding or adjust their budgets to accommodate the withheld support.
Conversely, the document suggests that new funding opportunities are coming, potentially aiding institutions that did not benefit from the initial CARES Act allocations. This shift may benefit those institutions finally receiving support through the new appropriations.
Overall, the lack of detailed guidance and clarity means that stakeholders will need to be vigilant in following further updates and instructions from the Department of Education to effectively navigate these changes. The eventual issuance of new guidance related to the 2021 Appropriations Act will be crucial for impacted institutions and individuals seeking to access relief funds.
Issues
• The notice is clear in stating that the Department cannot accept or process new applications for the CARES Act section 18004(a)(1) programs, but it does not explain what 'limited applicants' means, which may cause confusion.
• The document provides no detailed explanation of how the funds are reallocated according to the 2021 Appropriations Act, which might raise questions on financial transparency.
• There is no mention of any appeal process for those who submitted applications before December 27, 2020, which might be seen as unfair to those applicants.
• The requirement for meeting 'one of the five conditions described in the Reopening Notice' is referenced, but those conditions are not detailed in this document, making it difficult for readers to understand the qualifying criteria.
• The document does not provide specifics on how institutions can access the new funding opportunities created by section 314 of the 2021 Appropriations Act, only mentioning future guidance.
• The phrase 'unobligated CARES Act section 18004(a)(1) funds' may be unclear to individuals unfamiliar with budgetary or appropriations terminology.