Reps. Panetta, Levin Call on Department of Education for Clarity on Higher Education Funding in CARES Act

UPDATE: April 10:

Secretary DeVos announced formula grants for our colleges and universities. This is following Congressmen Panetta and Levin's urging the Department of Education to quickly provide CARES Act funding to higher education institutions.

The Secretary also wrote college and university presidents reiterating that the funding must be used to cover expenses related to COVID-19 disruptions, and encouraging them to prioritize students with greatest need.

Said Congressman Panetta, "I'm pleased that the Department of Education heeded our call to quickly distribute CARES Act funding for institutions of higher education. I will continue to push for official guidance on how these funds may be used so that they can best support students."

CA-20 Numbers

Cabrillo College: $4,027,260

Hartnell Community College $3,615,339

Monterey Peninsula College $2,415,633

California State University, Monterey Bay $8,459,727

University Of California, Santa Cruz $19,327,201

Gavilan College $2,328,197

Original Release, April 8

SALINAS, CA – Today, Congressman Jimmy Panetta (CA-20) and Congressman Mike Levin (CA-49) led 51 members in sending a bipartisan letter to Department of Education Secretary Betsy DeVos requesting swift disbursement of funding for higher education institutions in the recently passed Coronavirus Aid, Relief, and Economic Security (CARES) Act, as well as clarification on how this funding will be allocated and its allowable uses.

The members call on the Department to provide regulatory flexibility to officials and institutions charged with disbursing and allocating CARES Act funding, clarity on the formula methodology used for disbursing funds, and flexibility for students so that they may to continue to be eligible for federal aid. Specifically, the members ask for clarity on what limits the Department would place on the uses of this aid, highlighting the ways in which these limits could harm students.

"A number of institutions took immediate action to support students on their campuses, including providing emergency grants and loans for pandemic-related expenditures, and are deserving of timely support," the members wrote.

"American universities are at the forefront of responding to the COVID-19 pandemic. Our academic medical centers are treating patients, our faculty researchers are seeking lifesaving cures, and our campuses are providing remote learning to our students. It is vital for the federal government to move swiftly in releasing the funds Congress has set aside to support those combatting the COVID-19 pandemic," said Janet Napolitano, president of the University of California. "I cannot overstate the importance of ensuring that federal resources are allocated efficiently, transparently and with sufficient flexibility to allow our institutions to do the critical work at hand, including recovery. I applaud Representatives Panetta and Levin for their dedication to these aims and appreciate that they and others are working hard to ensure this funding reaches community members most in need."

"In the midst of a global pandemic, UC Santa Cruz faculty and staff are performing vital research and testing for COVID-19, all while continuing to instruct students who have had their lives upended by this virus. It is critical that federal resources be distributed promptly to our universities in an open and flexible process so that we can help the world meet this challenge. I thank Representatives Panetta and Levin for their decisive leadership on the CARES Act during this difficult time," said UC Santa Cruz Chancellor Cynthia Larive.

The full letter can be found below and here.

Dear Secretary DeVos:

As the country continues to grapple with the consequences of the COVID-19 pandemic, we write to encourage your swift, thoughtful, and transparent implementation of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. In particular, we ask for your support in ensuring that our nation's higher education institutions—many of which are actively conducting the research, education, and health care missions necessary to respond to this pandemic—receive the support they require to continue serving in this capacity from the U.S. Department of Education (Department) as soon as possible.

In implementing the CARES Act, we urge the Department to provide regulatory flexibility to officials and institutions charged with disbursing and allocating funding derived from the legislation. In calculating the amounts to be distributed to institutions, we encourage the Department to clarify the formula methodology used to disburse the funding and take into account the dramatic shift in financial resources that remain available to institutions and families in the wake of this pandemic.

Further, if not already otherwise permitted, we encourage the Department to allow institutions to augment student expense budgets to account for increased technology expenses required to complete remote education.

Some institutions may not have the capacity to enroll all students in a sufficient number of core courses to sustain the 12 credit hour minimum for federal aid, especially due to staff contract interruptions and enrollment changes during the pandemic, and we encourage the Department to provide students with the flexibility required for students to continue to be eligible for federal aid.

We also seek further clarification of the Department's intent in setting allowable uses for CARES Act funds, the timeline for distribution of those funds, and seek clarity on whether the Department will:

• Limit which students are eligible to receive emergency grants, which could harm certain students,
• Permit the use of emergency grants to reduce students' loan indebtedness, which could be helpful or necessary for some students,
• Limit direct support to undergraduate students, or also permit graduate students who are deserving and in need to receive relief,
• Limit relief to students who are Title IV eligible, which would unfairly exclude students based on immigration status, and
• Permit funding to be used until exhausted, or require funds to be expended by a certain date.

A number of institutions took immediate action to support students on their campuses, including providing emergency grants and loans for pandemic-related expenditures, and are deserving of timely support. We sincerely appreciate the Department's work to address these questions and concerns, especially in this time of great need and uncertainty.

Sincerely,