On Thursday, President Biden signed into law the American Rescue Plan Act (ARPA), the $1.9 trillion COVID-19 relief bill. This comprehensive measure includes $350 billion for state, local and tribal governments; direct payments of up to $1,400 for individuals; extension of the $300 per week unemployment insurance benefits until Sept. 6; and increases the maximum Supplemental Nutrition Assistance Program benefit by 15% through September. It also expands the child car tax credit, invests nearly $20 billion into COVID-19 vaccinations and $25 billion into rental and utility assistance.
In terms of education funding, it provides $170 billion, with over $120 billion going to the Elementary and Secondary School Emergency Relief (ESSER) fund. These funds can be used for any allowable use of funds under other federal education programs, including the Every Student Succeeds Act, Individuals with Disabilities Education Act, Adult Education and Family Literacy Act, and the Carl D. Perkins Career and Technical Education Act! In addition, funds can be used to reduce class sizes and modify spaces to comply with social distancing; modernize HVAC systems; hire more school custodians, nurses and counselors; and facilitate social distancing on transportation services with additional buses and drivers. Further, it requires states to reserve 5% and local school districts to reserve 20% of ESSER funds to address learning loss and the academic, social and emotional needs of the students. This is a change from the previous enacted two relief bills, which allowed funds to be used for learning loss, but did not make it a requirement. It also includes a maintenance of effort provision to ensure that state and local governments continue to provide investments into their education systems despite this injection of federal funds.
For higher education, ARPA directs $40 billion to public institutions of higher education, through the established Higher Education Emergency Relief (HEERF) fund. Schools must use at least 50% of funds received to provide emergency need-based financial aid to students, as with previous relief funds. These funds can be used for any component of a student’s cost of attendance. Additional use of funds can include the implementation of safety protocols, distance learning programs, and student services to support mental health and the social and emotional learning of students, among others.
Outside of direct education funding, the measure allocates $7 billion to the Federal Communication Commission’s (FCC) E-Rate program, which equips students and educators with internet access and devices for remote teaching and learning. Currently, it is estimated that roughly 16 million k-12 students, and 400,000 educators, lack high-quality home internet services and/or devices. There is also $362 billion for state and local fiscal relief, much of which could ultimately support education.
Education measures not related to funding include closing the 90/10 loophole in an effort to protect veterans and vulnerable populations from recruitment by low-performing for-profit colleges, and the elimination of taxation on federal student loan discharges from December 31, 2020 through January 1, 2026.
These are unprecedented investments in the country’s secondary and postsecondary systems, and CTE leaders should make sure they are involved in discussions about how funds will be used over the coming months. We will be providing more guidance on these processes as information is available.
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