On Monday, House Democrats introduced a new $2.2 trillion pandemic relief package as part of a last-minute attempt to find a bipartisan solution prior to both chambers leaving town until after the November 3 elections.
The proposal largely mirrors the HEROES Act, the $3.4 trillion package passed by the House in May, including an extension of the $600 expanded unemployment insurance, an additional round of $1,200 tax rebate checks, and more money for small businesses through the Paycheck Protection Program (PPP), among other provisions. In order to pare the proposal down by $1.2 trillion, the major differences come from large cost-saving measures. These cutbacks include a reduction in state and local government aid from $916 billion to $436 billion; reductions for hospitals and other health care providers of about $50 billion; a reduction of housing rental assistance by about $50 billion; a reduction of U.S. Postal Service aid by $10 billion. In addition, the PPP would lose $146 billion in previously appropriated funds that went unspent.
There is good news for education in the bill though, as the new bill more than doubles the education request to $225 billion, including over $200 billion for an education stabilization fund and some additional targeted resources. See below for a specific breakdown of education funding.
ED’s Education Stabilization Fund - $208.1 Billion
Funding is allocated to states based on a combination of the number of school-aged children and the number of Title 1-eligible children. Funding is not dependent upon schools reopening and can be used for the types of services and supplies that were allowed under the CARES Act. Funding is divided as follows:
- $175 billion for elementary and secondary education
- $27 billion for public postsecondary education, with 75% based on the number of Pell Grant-eligible students; funds can be used for an institution’s needs and for grants to students
- $4 billion for governors to use on education, including restoring state and local education support
- $2 billion for Bureau of Indian Education, tribal colleges and outlying areas
- Maintenance of effort – states must maintain the percent of their budgets spent on education in fiscal year (FY) 2019 for FYs 2020 through 2022, with further specific assurances for K-12 funding and higher education.
Higher Education $11.9 Billion
This section has funding for private institutions of higher education, and the allowable uses reflect those for public institutions in the Education Stabilization Fund. It includes:
- $3.5 billion for Historically Black Colleges and Universities and for Minority-Serving Institutions
- $7 billion for private, non-profit institutions of higher education (page 168)
- $1.4 billion for institutions with unmet need related to coronavirus
- $20 million for Howard University
- $11 million for the National Technical Institute for the Deaf
- $11 million for Gallaudet University
K-12 School Facilities - $5 Billion
These funds are to respond to coronavirus and can be used for repairs and improvements to support student health needs, including improvements to allow outdoor teaching. Federal funds are not normally allowed to be used for physical school maintenance cost.
Other Education-Related Funding
- $32 million for Institute of Education Sciences (IES) – Funding is for the National Assessment of Educational Progress Assessment Act for reading and math assessments in 2021.
- $7 million for the Office of Inspector General
- $57 billion for child care – Provides $7 billion for the Child Care and Development Block Grant for providers and $50 billion for a state Child Care Stabilization Fund
- $12 billion to close the homework gap and $3 billion for emergency home connectivity – The $12 billion is for schools and libraries to fund Wi-fi hotspots and devices
- $2.1 billion for worker training
- $1.7 billion for Head Start
- $350 million for the Corporation for National and Community Service
- $175 million for the Corporation for Public Broadcasting
- $135 million for the Institute of Museum and Library Services
A vote on this bill is expected later this week, but has not been officially scheduled yet. Speaker Pelosi and Treasury Secretary Mnuchin have a call scheduled for Tuesday to continue negotiating a bipartisan package. Assuming talks do not lead to an agreement, the House will vote, and likely pass, this proposal prior to leaving for October recess. Although there is little expectation that this will lead to a bipartisan deal, ACTE continues to advocate on behalf of our members and the CTE community for much needed support.