Given the impact of COVID-19 on the grants landscape, our monthly projection emails will begin (for the foreseeable future) with a comprehensive overview of news and announcements pertaining to the pandemic.

Hanover is closely monitoring developments surrounding COVID-19 and how it has and may continue to impact the education community. This resource center provides key facts, resources, and potential responses to this rapidly evolving situation. Our dedicated COVID-19 support email (covid19-support@hanoverresearch.com) can be used to ask any questions related to COVID-19. In addition, and as always, your dedicated Content Director and Relationship Director also are ready to help with custom research solutions to the challenges you are facing. 

Overview of COVID-19 Senate Stimulus Bill (CARES Act)

The White House and Senate recently agreed to a $2 trillion stimulus bill to ease the economic impact during the COVID-19 epidemic. Passed by the House on March 27, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) includes, among other initiatives:

• $500 billion in loans for cities, states and businesses;
• $349 billion in loans for small businesses (i.e., those with fewer than 500 employees);
• $150 billion in emergency aid for state, local, and tribal governments;
• $117 billion for hospitals and health care providers; and
• $31 billion for an Education Stabilization Fund for states, school districts and institutions of higher education for costs related to the coronavirus.

Department of Education

According to the CARES Act, the Department of Education will receive $30.75 billion for an Education Stabilization Fund for states, school districts, and institutions of higher education for costs related to the coronavirus. The allotted funding is apportioned as follows: 9.8% for the Governor’s Relief Fund, 43.9% for elementary and secondary education, and 46.3% for higher education.

Governor’s Relief Fund

Governors in each state will receive a share of $3 billion for emergency support grants. Funds are allocated to state governors according to the formula: 60% based on the size of the population aged 5–24, 40% on the basis of relative total population. Governors may use funds for emergency support to LEAs; emergency support to IHEs; or to support any other education-related entity that has been impacted by the coronavirus.

Elementary and Secondary Education

For elementary and secondary education, $13.5 billion will be available for formula grants to states, 90% of which will be allotted in the same proportion that each state received funding under ESSA Title IA in the most recent fiscal year (2019-2020). The remaining 10% may be reserved for emergency needs by the state.

LEAs may use funding for any activity authorized by the Vento Homeless Assistance Act, as well as for the following activities:

• Coordination of preparedness and response efforts of local educational agencies public health departments;
• Providing principals and other school leaders with the resources necessary to address the needs of their individual schools;
• Activities to address the unique needs of low-income children or students, children with disabilities, and other vulnerable populations;
• Developing and implementing procedures and systems to improve the preparedness and response efforts of local educational agencies;
• Training and professional development for staff of the local educational agency on sanitation and minimizing the spread of infectious diseases;
• Purchasing supplies to sanitize and clean facilities;
• Planning for and coordinating during long-term closures;
• Purchasing educational technology;
• Providing mental health services;
• Planning and implementing activities related to summer learning and supplemental afterschool programs; and
• Other activities necessary to maintain operations.

Finally, ED is allowing the waiving of testing requirements and reporting obligations of academic standards for state and local education agencies.

Higher Education

For higher education, $14.25 billion will be available for to prevent, prepare for, and respond to the coronavirus. This funding will be allotted to each IHE according to the relative share of full-time equivalent enrollment of Federal Pell Grant recipients (75% on its share of Pell FTE students, and 25% on non-Pell FTE students).

Funds may be used to defray expenses for lost revenue, technology costs associated with adopting distance education, and grants to students for health care, food, housing, course materials, and related needs. Notably, funding cannot be used to pay contractors for pre-enrollment recruitment activities; for endowments; or for capital outlays associated with facilities for athletics, secretarial instruction, or religious worship. At least half of funds must be used for emergency financial aid grants to students due to coronavirus-related disruption.

In addition, for 2019-2020 and 2020-2021, ED will waive the obligation for IHEs to match federal grants for campus-based aid programs with an equivalent amount (for non-profit institutions only). Institutions will also be permitted to allocate funds previously assigned to work-study programs to supplemental grants. IHEs will be permitted to award additional emergency financial aid funds to students that have been impacted by the coronavirus, and will also be allowed to issue work-study payments as lump sums to students who are not able to work due to closures. ED is also allowing for the waiving or modification of current allowable uses of funds for institutional grant programs, and will waive certain outcome requirements for grant programs for HBCUs and other MSIs.

Timeline

The CARES Act states (for the Education Stabilization Fund) that: “The Secretary shall issue a notice inviting applications not later than 30 days of enactment of this Act and approve or deny applications not later than 30 days after receipt,” indicating an announcement in April with a due date in May. For the Governor’s Relief Fund, grants will be awarded “to the governor of each state with an approved application.” For elementary and secondary education, grants are awarded “to each state educational agency with an approved application.” For higher education, the CARES Act states that funding will be awarded directly to IHEs (without a timeline).

Other Federal Stimulus

• Department of Agriculture: $25M in additional funding for the Distance Learning, Telemedicine, and Broadband Program.
• Department of Commerce, Economic Development Administration: $1.5B for economic development assistance programs.
• Department of Commerce, National Institute of Standards and Technology: $6M for Scientific and Technical Research And Services to support continuity of operations, including measurement science to support viral testing and biomanufacturing, $60M for Industrial Technology Services, and $10M for the National Network for Manufacturing Innovation to support development and manufacturing of medical countermeasures and biomedical equipment and supplies.
• Department of Commerce, National Oceanic and Atmospheric Administration: $20M for operations, research, and facilities.
• Department of Defense, Defense Health Program: $415M for research, development, testing and evaluation.
• Department of Energy: $99.5M to prevent, prepare for, and respond to coronavirus for necessary expenses related to providing support and access to scientific user facilities in the Office of Science and National Nuclear Security Administration, including equipment, enabling technologies, and personnel associated with the operations of those scientific user facilities.
• Department of Health and Human Services: $134.8B for a wide variety of research and health services.
• Department of Housing and Urban Development, Community Development Block Grant: $5B for states, counties, and cities, including for the expansion of community health facilities, child care centers, food banks, and senior services. $2B will be allocated to states according to the 2020 CDBG formula, $1B will help states to support a coordinated response across their communities, and $2B will help states and units of local government, cities, and counties based on coronavirus risk to economic and housing issues.
• Department of Labor, Employment and Training Administration: $345M for training and employment services. In addition, existing DOL Workforce Innovation Opportunity Act funds reserved by a Governor for program year 2019 for statewide activities that remain unobligated may be used for statewide rapid response activities.
• Environmental Protection Agency: $1.5M for research methods on reducing the risks from environmental transmission of the coronavirus via contaminated services or materials.
• Institute of Museum and Library Services: $50M for grants to states, territories, and tribes to expand digital network access, purchase internet accessible devices, and provide technical support services.
• National Endowment for the Arts: $75M to be distributed in grants.
• National Endowment for the Humanities: $75M to be distributed in grants; 40% for state humanities councils and 60% for direct grants.
• National Science Foundation: $75M for research and related activities. The Senate summary of the bill adds additional context, stating that this funding will “support research at molecular, cellular, physiological and ecological levels to better understand coronavirus genetics, modes of action, transmission, virulence and population dynamics.”

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This section comprises our monthly update for the federal response to COVID-19 (apart from the $2 trillion stimulus, outlined above).