According to a Federal Register notice posted Monday, the secretary of education may waive the requirements to reduce a school’s Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA) allocation by 50% if an institution of higher education demonstrates need in their application.
The notice applies to any institutions that paid or were required to pay the endowment excise tax in tax year 2019 and were subject to have their Higher Education Emergency Relief Fund (HEERF) allocation reduced by 50%, as outlined in the second federal coronavirus relief package.
The Department of Education (ED) estimated the allocation reduction waiver could apply to 10 private nonprofit institutions and 190 for-profit institutions. In the application, institutions must demonstrate need for the total amount of allocated HEERF funds, including need for additional funding for financial aid grants to students, payroll expenses, or other expenditures.
Comments on the proposed form can be submitted to ED for 30 days, through Oct. 27, 2021. The form should not be submitted by schools as it has yet to be officially released as ED considers input from institutions during the comment request period.
Publication Date: 9/28/2021