Federal Register - May 14, 2021
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Source: Federal Register
Federal Register / Vol. 86, No. 92 / Friday, May 14, 2021 / Rules and Regulations initial section 18004a1 allocations that were posted in April 2020 prior to
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the allocation of the $1.86 million that was originally held in reserve.
TABLE 2ASUMMARY OF CARES ACT HEERF a1 ALLOCATIONS
Total award allocation
Type of institution
Minimum amount for student aid
Maximum amount for institutional portion
Public
Private, Non-Profit
Proprietary
8,904,536,829
2,484,027,454
1,118,690,220
4,452,268,877
1,242,014,126
559,345,530
4,452,267,952
1,242,013,328
559,344,690
Total
12,507,254,503
6,253,628,533
6,253,625,970
As indicated earlier in this preamble, under CRRSAA, approximately $22.7
billion in additional funding was made available for institutions of higher education under HEERF. Funding was appropriated for the existing a1, a2 and a3 programs previously authorized under the CARES Act, as well as for a new a4 program authorized under CRRSAA that provides funds for proprietary institutions for exclusive use as financial grants to students. Proprietary institutions are no longer eligible to receive awards under the a1 program.
These funds were allocated according to a slightly revised formula, but
institutions were required to use at least the same amount for student grants as they did under the original HEERF
allocation. CRRSAA appropriates more funding approximately $22.7 billion instead of $12.6 billion for supplemental and new awards under CRRSAA section 314a1, so, on average, a larger share of a1
allocations will be available for institutional support than under the CARES Act. The allocation methodology is described in the Methodology for Calculating Allocations Under Section 314a1 document posted January 14, 2021.12 Students enrolled in exclusively distance education courses are included
in the CRRSAA section 314a1
allocation formula. Institutions will now receive allocations that factor in such students under the formula, and the formula also allows exclusively online institutions that were ineligible for funding under section 18004a1 of the CARES Act to apply for grant funds.
Amounts apportioned for students enrolled in exclusively distance education courses may be used only for financial aid grants to students. Table 2B summarizes the allocations to institutions of CRRSAA funds.
TABLE 2BSUMMARY OF CRRSAA a1 AND a4 ALLOCATIONS
Total award allocation
Type of institution
Minimum amount for student aid
Maximum amount for institutional portion
Public
Private, Non-Profit
Proprietary
16,440,482,886
4,077,819,283
680,914,080
4,475,143,071
1,308,911,589
680,914,0800
11,965,339,815
2,768,907,694
Total
21,199,216,249
6,464,968,740
14,734,247,509
TABLE 2CSUMMARY OF ARP a1 AND a4 ALLOCATIONS
Total award allocation
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Type of institution
Minimum amount for student aid
Maximum amount for institutional portion
Public
Private, Non-Profit
Proprietary
28,830,604,105
7,191,354,595
395,845,7000
14,657,490,881
3,713,709,802
395,845,7000
14,173,113,224
3,477,644,793
Total
36,417,804,400
18,767,046,383
17,650,758,017
We estimate that the definition of student eligibility for the financial aid grants to students will not have an impact on the Federal budget. The CARES Act provided a maximum of $12.5 billion, with a minimum of $6.25
billion required to be spent on emergency financial aid grants to students and not spent on institutional
expenses. The definition of student eligibility also applies to the $22.7
billion in additional funding appropriated under CRRSAA and $39.6
billion under ARP. These totals include amounts available under sections a2
and a3 of CARES, CRRSAA, and ARP
that provide funds to minority-serving institutions and as supplemental
assistance to private, non-profit, and public institutions to be awarded competitively. The final rule does not impact the Federal budget because it expands which students are eligible to receive emergency relief provided by the CARES Act, CRRSAA, and ARP but does not change the amount available for such grants. As described in the
12 https www2.ed.gov/about/offices/list/ope/
314a1methodologyheerfii.pdf.
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