CARES Act Policy Summary
March 30, 2020
Key Provisions of CARES Act for K-16 Education
$30.75 billion Education Stabilization Fund
- $14 billion – Higher Education Emergency Relief Fund
- $13.2 billion – Elementary and Secondary Education Relief Fund
- $3 billion – Governor’s Emergency Education Relief Fund
- $307.5 million – States with the highest Coronavirus burden
- $153.75 million – Bureau of Indian Education
- $153.75 – Outlying Areas
GRAND TOTAL | |
STATE | ESTIMATED ALLOCATION |
Colorado | $371.9 million |
Connecticut | $271.2 million |
District of Columbia | $83.6 million |
Louisiana | $515.3 million |
Massachusetts | $526.3 million |
New Jersey | $631.4 million |
New York | $2.04 billion |
Washington | $509.4 million |
| Estimated State Shares of |
STATE | ESTIMATED ALLOCATION |
Colorado | $121.4 million |
Connecticut | $109.3 million |
District of Columbia | $42.4 million |
Louisiana | $284.3 million |
Massachusetts | $210.8 million |
New Jersey | $253.6 million |
New York | $1.015 billion |
Washington | $231.7 million |
Estimated State Shares of | |
STATE | ESTIMATED ALLOCATION |
Colorado | $39.9 million |
Connecticut | $29.4 million |
District of Columbia | $6.4 million |
Louisiana | $52.5 million |
Massachusetts | $52.8 million |
New Jersey | $77.4 million |
New York | $198.8 million |
Washington | $54.2 million |
Estimated State Shares of | |
STATE | ESTIMATED ALLOCATION (Not including HBCU / MSI set-aside share) |
Colorado | $210.6 million |
Connecticut | $132.5 million |
District of Columbia | $34.8 million |
Louisiana | $178.6 million |
Massachusetts | $262.7 million |
New Jersey | $300.4 million |
New York | $828.6 million |
Washington | $223.5 million |
Elementary and Secondary Education Relief Fund – | Governors Fund | |
Distribution to States | State share of Title I funding for FY 2020 | 60% on basis of state’s relative share of population aged 5-24 |
Distribution to Districts | District share of Title funding for FY 2020 | Governor’s choice according to criteria below |
State Set-Aside | ≤ 10% | Governor’s choice according to criteria below |
Local Education Agencies | ≥ 90% | Governor receives funds then makes subgrants |
Allowable Uses of Fund | - Any allowable use under ESEA, IDEA, Perkins (voc. ed) McKinney-Vento (homeless), Adult Ed and Family Literacy Act, Native Hawaiian Education Act, and Alaska Native Educational Equity, Support and Assistance Act | - Grants to LEAs and IHEs most significantly impacted by coronavirus to support continued educational services and to support ongoing functionality of LEA or IHE |
K- 12 Waivers – Conditions
- Expedited process: waivers approved or disapproved within 30 days
- Not to exceed to 2019-2020 academic year, except in the case of MOE
- Any school identified for support and improvement (CSI, ATS, or TSI) in the 2019-20 school year must remain in improvement for the 2020-21 school year and continue receiving supports
- In applying for waivers, agencies must describe how coronavirus restricts its ability to comply with the relevant statutory requirement and provide an assurance that the agency will work to mitigate any negative effects that occur as a result of the waiver
- Waivers must be available for public comment prior to submission, Congress must be notified within 7 days of all approvals, ED must post approved waivers on its website and in the Federal Register within 30 day
Allowable K-12 Waivers – States and Indian Tribes
- Assessments, including alternate assessments for students with significant cognitive disabilities, ELP assessments, and provisions for recently arrived English learners [ESEA 1111(b)(2)-(3)]
- Accountability, including long-term goals, indicators, annual meaningful differentiation of schools, and school identification for CSI, ATS, and TSI [ESEA 1111(c)(4), 1111(d)(2)(C)-(D)]
- Related reporting requirements for SEAs and LEAs, including:
- Description of accountability system
- Academic achievement
- Other academic indicator
- ELP acquisition
- Achool quality or student success indicators
- Whether students met long-term goals
- Percentage of students assessed/not assessed
- Students taking the alt. assessment
Obligation of Funds: appropriated funds to be obligated and expended by SEAs in the fiscal year, or immediately succeeding fiscal year, in which the appropriation was made [GEPA 421(b)]
Allowable Waivers – States, Tribes, and School Districts
- Eligibility to operate a school-wide Title I program [ESEA 1114(a)(1)]
- Maintenance of Effort [ESEA 1118(a) and 8521]
- 15% Limitation on Carryover of Title I Funds [ESEA 1127]
- Student Support and Academic Enrichment Grants (Title IV-A)
- Requirement (for LEAs receiving >$30,000) to conduct a needs assessment to inform district uses of funds [ESEA 4106(d)]
- Requirement (for LEAs receiving grants >$30,000) to spend at least 20% of funds on activities supporting a well-rounded education, 20% on activities supporting safe and healthy students, and a portion of remaining funds on effective use of technology [ESEA 4106(e)(2)(C)-(E)]
- Limitation that no more than 15% of funds may be spent on technology infrastructure [ESEA 4109(b)]
- Definition of “professional development” under all ESSA programs [ESEA 8101(42)]
Student Loan Relief
- Six month moratorium (i.e. through Sept 30, 2020) on all federal Direct Loans and pre-2009 federal FFEL loans owned by the U.S. Dept. of Education
- No interest accrual
- Suspension of all involuntary collections, wage garnishment, and withholding or reduction of tax refunds during moratorium period
- Each moratorium month deemed a month in which payments are made for the purpose of federal student loan forgiveness (includes TEACH grants/loans & PSLF)
- Secretary to send notice to borrowers of actions taken and about to be taken as per this general section
- NOT included
- NO moratorium on private student loan collection
- NO moratorium on federal Perkins loan collection
- NO moratorium on federal FFEL loans not owned by the U.S. Dept. of Education
- NO cancelation of underlying principal student loan debt
Higher Education Relief Fund | |
National Set-Aside | $1 billion set-aside for HBCUs & other minority serving institutions (MSIs) |
Distribution to Colleges (including HBCUs, other MSIs, & for-profits) | After national set-aside: |
Distribution to Students | At least 50% of institution of higher education received funds must be distributed directly to students in the form of emergency grant aid for costs associated with coronavirus response/displacement (e.g. housing, technology, transportation, food, child care, health care) |
Allowable Uses of Funds | Any costs associated with “significant changes to the delivery of instruction” due to the coronavirus, except: |
General Higher Education Act Amendments | |
Sec. 3503 | - Allows colleges to transfer federal work-study (FWS) funds to supplemental educational opportunity grant (SEOG) program |
Sec. 3504 | Allows institutions to award funds transferred from federal work study to SEOG to be distributed to students impacted by COVID-19 |
Sec. 3505 | Allows institutions to issue work-study payments as a lump sum or in payments similar to regular paychecks to students unable to work due to work-place closures |
Sec. 3508 | - For students who dropped out of school as a result of COVID-19, the student is not required to return Pell grants or federal student loans to the Secretary. |
Sec. 3509 | For students who drop out due to coronavirus, term enrollment excluded from lifetime Pell and student loan term caps |
Sec. 3512 | Authorizes the Secretary to defer payments on current HBCU Capital Financing loans during the national emergency period so HBCUs can devote financial resources to COVID-19 efforts |
Sec. 3517 | Authorizes the Secretary to waive outcome requirements for FY2021 HBCU and other Minority Serving Institution (MSIs) competitive grant programs |
Sec. 3518 | Permits the Secretary to waive institution of higher education financial matching requirements associated with any U.S. Department of Education competitive grant program |
Forgivable Small Business “Paycheck Protection” Loan Program
$349 billion for Small Business Administration-backed forgivable loans.
- Businesses and nonprofits with less than 500 employees can apply for a loan through June 30, 2020
- Maximum loan amount is $10 million. May be used for payroll costs for employees earning less than $100K, costs related to the continuation of group health care benefits, salaries, rent, payments of mortgage interest, utilities, and debt obligations
- Loan may be 100% forgiven if the business or non-profit maintains its payroll (i.e. no layoffs, no furloughs); ratable reduction if reduction in payroll or salaried employees
- SBA to issue guidance and regulations on governing administration and loan forgiveness within 30 days
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