The State of Higher Education Spending From the CARES Act
From Center for American Progress (excerpt)
…Last month, Congress delivered another $23 billion in relief to help higher education institutions respond to the COVID-19 pandemic. As the U.S. Department of Education doles out the second round of relief, new data show how much remains of the $14 billion in funding that colleges received from the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed in March 2020….
As of late November 2020, institutions had applied for and received $13 billion of the $14 billion. Nearly $847 million remains unawarded. Of the $13 billion that institutions received, three-quarters of the funds—or nearly $10 billion—have been spent. Colleges have spent an even larger share of the funds required to go toward students: 92 percent has already been spent, with $463 million remaining….
…of the $13 billion that institutions applied for and received, almost $10 billion, or 75 percent, has been spent. With the exception of Hawaii, institutions in every state and the District of Columbia have spent nearly 60 percent of the total funds awarded to colleges in that state. Institutions in Hawaii have only spent 40 percent of total allocated funds….
Funds for all institutions
The Education Department awarded the following funds to Title IV institutions in all states and the District of Columbia.
1 -- Student portion: The CARES Act required institutions to distribute about half of the HEERF funds to students in the form of emergency grant aid. Institutions that were awarded funds in 40 states and the District of Columbia have spent at least 90 percent of these funds. Institutions in Arizona have spent the lowest—69 percent.
2 -- Institutional portion: Nearly two-thirds, or 65 percent, of institutional funds have been spent. Institutions in 36 states and the District of Columbia have spent at least 60 percent of these funds. Institutions in Hawaii have spent less than a third—31 percent—of their allocated funds….
Funds awarded to specific types of institutions
The CARES Act provided the following funds to specific institution types in addition to the institutional funds that colleges of all types received. Some institutions may have received funds under more than one of the categories below. Spending under these funds is much lower than under student and institutional funds, which may be because colleges are spending down those funds first….
5 -- Fund for the Improvement of Postsecondary Education (FIPSE): FIPSE is a formula grant program aimed to ensure that all public and nonprofit institutions receive at least $500,000 in relief. About half—48 percent—of these funds have been spent. Institutions in 49 states and the District of Columbia received FIPSE funds. Institutions in South Carolina, Mississippi, Idaho, and Hawaii have spent 100 percent of their dollars. However, institutions in Rhode Island, Delaware, and Alaska have not spent any of their FIPSE funds….
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