Major Updates

• American Rescue Plan Moves Through Congress, Towards President’s Desk
  The fifth major Coronavirus relief bill and the first for President Biden, the American Rescue Plan is moving through Congress. Democrats have decided to use the budget reconciliation process, a parliamentary maneuver with a lower vote threshold for passing bills in the Senate. This will help with final passage, since Democrats have a slim majority with the 50-50 split in the Senate, with Vice President Harris’ tie-breaking vote. Bipartisan support of the bill is not expected. The $1.9 trillion bill provides for additional stimulus checks and unemployment relief, hundreds of billions allocated for vaccine distribution, $350 billion for state and local budget shortfalls from lost tax revenue and expenditures. The $15/hr minimum wage increase did not pass muster with Senate rules (budgetary considerations are restricted in their scope, and the Senate Parliamentarian issued a final ruling that it is not applicable as part of this unique legislative vehicle).

  Significant funding of $40 billion is set aside for higher education, a marked increase from the $23 billion included in the December COVID relief bill, and almost triple the $14 billion included in the CARES Act last spring. Still, this is seen by many experts as insufficient compared to the estimated shortfall of $100+ billion facing students and institutions. The distribution and use of these funds will largely reflect the same formulas as seen in the December bill which we previously covered.

  However, there is a new provision based on the portion of Pell grant recipients who were exclusively enrolled in distance education courses prior to the pandemic. That portion is to be expected to be spent fully on student emergency grants. Additionally, the bill will bar states from disproportionately cutting higher-education funding in the 2022 and 2023 fiscal years. The House has voted to pass the bill, and the Senate will vote sometime in the first week in March, with final signature expected around mid-March from President Biden.

• US Department of Education Staff Takes Shape; Biden Lowers Expectations for Debt Relief
  The past month has brought us a clearer look at how the Biden Administration will staff the US Department of Education, what that may mean for implementation of policy, and which issues they may focus on over the next four years. Last month, we covered the choice for Education Secretary Miguel Cardona, who is expected to be confirmed shortly. This month provided more clarity on junior positions, the most significant of which was James Kvaal being tapped as Under Secretary at the Department of Education. This position drives policies and regulations at the Department for higher education, including federal student aid. Kvaal was a deputy domestic policy adviser in the White House to Barack Obama, where he focused on making college tuition more affordable, protecting students from unaffordable loans and increasing student graduation rates and outcomes, oftentimes through greater institutional accountability. The focus on these areas are present throughout his career, including his work in Congress and the Clinton Administration.

  February had additional announcements of some other key positions in Department staff including Michelle Asha Cooper appointed as Deputy Assistant Secretary for Postsecondary Education. In the absence of an Assistant Secretary of Postsecondary Education, Michelle fills the role of Acting Assistant Secretary for Postsecondary Education, which oversees higher education programs, international and foreign language education, policy, planning and innovation, and accreditation issues at the Department. Asha Cooper comes from her most recent role as the President of the Institute of Higher Education Policy (IHEP), an organization focused on ensuring equal educational opportunities for all students, particularly underserved students including low income students, students of color, and adult learners. The totality of these appointments portend a greater focus on student access, equity for underserved communities, and a continuation of Obama-era focus on stopping predatory practices and expanding the access mission of higher education by supporting HBCUs and other Minority Serving Institutions. We can also assume a greater focus on institutional accountability and student outcomes.

  Student debt also continues to be a big focus of Democrats. While Senate Majority Leader Chuck Schumer and Senator Elizabeth Warren, along with a few more progressive House members announced a bill on $50,000 in student debt forgiveness, President Biden quickly followed up with his thoughts during a question about the scale of forgiveness during a recent town hall, flatly stating “I will not make that happen.” He went on to explain that he didn’t see the need to provide debt forgiveness to graduates of more elite colleges, who may rack up higher loans but go on to earn more money. The president also said that he does not believe he has the authority to forgive that amount of debt through executive action. He mentioned a willingness for a lower number such as $10,000, and continued to plug his campaign promise of two years of community college or other high-quality training program, debt free, for families below a certain income threshold.

Other News

• Today’s Students Coalition and LeadMN Host D.C Student Summit (March 21-24)
  This four-day virtual trip will offer students the opportunity to meet with their representatives in Congress and will equip them with the tools to uplift student voices in the halls of the Capitol. Attendees will gain hands-on experience working on federal higher education issues and insight into how policymaking works.
• Justice Department Drops Race Discrimination Lawsuit Against Yale University (NPR)
• UPCEA Cosigns Letter to Senate Leadership in Support of the Dream Act 2021
• More College Students Are Eligible for Food Stamps (Inside Higher Ed)