April 10, 2020
On April 9, the Department of Education released highly-anticipated guidance on the process higher education institutions will use to access portions of the nearly $14 billion allocated to them through the CARES Act. Education Secretary Betsy DeVos sent a letter to college and university presidents to provide instructions for accessing the initial round of these relief funds, which represent 50% of the total amount allocated to each institution. This first allocation can be used exclusively for providing emergency grants to students; details on the remaining funds designated for institutional use are forthcoming.
In order to access CARES Act funds, higher education institutions must sign and return the DOE’s Certificate of Funding and Agreement via grants.gov, acknowledging the terms and conditions of the funding. After the Department has received the certificate, institutions may use the Department’s G5 system to draw down their funds.
Notable provisions of the Certification and Agreement include:
The DOE also published a chart containing the total allocation amount each college or university can expect to receive from the Higher Education Emergency Relief Fund, along with a dollar figure representing the minimum allocation that must be awarded to that institution’s students in the form of emergency financial aid grants.
DeVos also stated that the DOE is working to “allocate the remaining funding that is reserved for institutional use, and we will provide details on how institutions may apply for this institutional funding, as well as for other emergency funding, in the coming days.”
If you have any questions or would like assistance in understanding your institution’s allocation under the CARES Act, please contact Dan Cohen, Lexi Trumble, or any members of the Nelson Mullins Education Team.
These materials have been prepared for informational purposes only and are not legal advice. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Internet subscribers and online readers should not act upon this information without seeking professional counsel.