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 Estimated State Shares of Education Relief Funds (not including HBCU / MSI set-aside) $30.75 billion
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 Elementary and Secondary Education Relief Fund $13.2 billion
STATE	ESTIMATED ALLOCATION (State share of Title funding for FY 2020)
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 Governor’s Emergency Education Relief Funds $2.95 billion
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 Higher Education Emergency Relief Fund $13.95 billion
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 – $13.2 billion	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 40% on basis of state’s relative share of Title I-eligible (low-income) students
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 - Activities to address the needs of low-income students, children with disabilities, English learners, racial and ethnic minorities, students experiencing homelessness, and foster care youth - Planning and coordinating during long-term closures, including how to provide meals to eligible students, technology for online learning, and IDEA guidance - Purchasing educational technology, including: hardware; software; connectivity; assistive technology; or, adaptive equipment. - Planning and implementing summer learning and supplemental after school programs - Mental health services - Coordinating with public health department - Training/PD on sanitation and minimizing spread of infectious diseases - Purchasing supplies to sanitize and clean LEA facilities	- Grants to LEAs and IHEs most significantly impacted by coronavirus to support continued educational services and to support ongoing functionality of LEA or IHE - Grants to LEAs, IHEs, or any other “education related entity” for emergency educational services, which can include child care and early education, social/emotional support, and protection of education-related jobs

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 $13.95 billion
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: - 75% based on each institution’s share of Pell Grant FTE students - 25% based on each institution’s share of total non-Pell FTE students
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: - Payments to contractors for student recruitment; - Capital outlays related to athletics, sectarian instruction, or religious worship; and - endowment reimbursement / growth

	General Higher Education Act Amendments
Sec. 3503 Campus-Based Aid Program Flexibility	- Allows colleges to transfer federal work-study (FWS) funds to supplemental educational opportunity grant (SEOG) program - Waives institution matching requirement for campus-based aid programs (SEOG, FWS
Sec. 3504 Use of SEOG funds for Emergency Grant Aid	Allows institutions to award funds transferred from federal work study to SEOG to be distributed to students impacted by COVID-19
Sec. 3505 Continuing Work Study Payments During the Emergency	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 Waiver of Return of Title IV Fund Requirements	- 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. - Waives requirement that institutions calculate the amount of grant or loan assistance the institution must return to the Secretary in the case of students who dropped out of school as a result of COVID-19
Sec. 3509 Tolling of Lifetime Limits of Pell Grant & Student Loan Eligibility	For students who drop out due to coronavirus, term enrollment excluded from lifetime Pell and student loan term caps
Sec. 3512 Deferral of HBCU Capital Finance Program Payments	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 Waiver of Reporting Requirements for HBCU/MSI Institutional Aid	Authorizes the Secretary to waive outcome requirements for FY2021 HBCU and other Minority Serving Institution (MSIs) competitive grant programs
Sec. 3518 Additional Matching Requirement Waiver Authority for Non-Student Aid Higher Ed Programs	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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