U.S. Senate Introduces Latest COVID-19 Relief Legislation, Negotiations Stall on Final Package 

On July 27, 2020, Senate Republicans introduced the $1 trillion Health, Economic Assistance, Liability Protection, and Schools (HEALS) Act, their opening offer on the next COVID-19 relief package. The following are major provisions of the HEALS Act affecting educational institutions:

• Increased Institutional Aid – Allocates $105 billion to support education, including $70 billion for K-12 schools, $29 billion for colleges and universities, and $5 billion for governors to spend on education. The federal funding would remain available through September 30, 2021.
  • Note that for K-12 schools, one-third of the aid would go to all school districts and private schools that have applied for the funding. Two-thirds would be available to help schools with additional costs of reopening for in-person instruction.
  • Private colleges and universities that paid the net investment income tax (aka endowment tax) in 2019 would receive less aid and would only be allowed to use the funding for student aid. Additionally, the allocation for colleges and universities includes $2.9 billion in direct funding for Historically Black Colleges and Universities (HBCUs) and other Minority Serving Institutions (MSIs).

• Adjustments to Foreign Gift Reporting – Amends Section 117 of the Higher Education Act by lowering the foreign gifts and contracts reporting threshold for colleges and universities from $250,000 to $50,000. It also allows the Department of Education to fine institutions for repeatedly failing to file a foreign gift report.
• New Temporary Liability Protections – Protects U.S. schools, colleges, and universities from lawsuits related to COVID-19. The bill covers coronavirus-related exposure injuries occurring between December 1, 2019 and October 1, 2024, and applies to personal injury lawsuits associated with COVID-19
• Modifications to Paycheck Protection Program – Provides $190 billion to the Paycheck Protection Program and allows businesses and nonprofit organizations with under 300 employees and a 50% reduction in revenue to apply for a second round of loans. The bill also makes funding available for separate low-interest loans that could be paid back over 20 years.
• Changes to Employee Retention Tax Credit – Increases employee refundable payroll tax credit from 50% to 65% of $10,000 per quarter (not to exceed $30,000 for the year) in the wages paid to each employee by employers. Employers with fully or partially suspended operations due to government orders related to COVID-19 are eligible for the credit. However, public institutions remain ineligible.

The bill also includes increased federal funding for coronavirus testing and vaccine development, unemployment insurance, and the military and defense industry. Read the American Council on Education’s (ACE) summary for more details on specific provisions.

While the HEALS Act proposes some provisions beneficial to educational institutions, the bill does not include strengthened charitable giving incentives. CASE and the Charitable Giving Coalition are continuing to urge Congress to include the Universal Giving Pandemic Response Act (S. 4032, H.R. 7324) in the final COVID-19 response package. CASE also joined the nonprofit community in a letter calling on Congress to provide additional relief for charities, including U.S. schools, colleges, and universities. 

While the Trump Administration, House, and Senate leaders began negotiations following the HEALs Act’s introduction, negotiators have been unable to reach a deal on a final package. Following stalled negotiations, President Trump issued executive orders related to the pandemic, including one that would defer student loan payments and interest until December 31, 2020. Negotiations are expected to resume after the August congressional recess concludes.  

To stay updated on the latest news and developments, visit CASE’s COVID-19 Response Legislation web page and subscribe to the CASE Advocacy Network.

CASE Launches First Advocacy Survey

In conjunction with the 2020 Public Higher Education Legislative Advocacy Professionals (PHELAP) virtual conference, CASE has launched an Advocacy Survey to explore how institutions are engaging alumni, students, faculty, and others in their advocacy programs. The survey, which is open to public and private colleges and universities, will also provide valuable benchmarking information to advocacy professionals.

For purposes of the survey, an advocacy program is defined as a formal program, activity, or initiative designed to engage or ask key constituents, such as alumni, students, and faculty, etc., to weigh in with government officials.

The deadline to complete and submit the survey is Wednesday, September 30, 2020.

Survey results will be shared with participating institutions in Fall 2020.

Visit CASE’s Alumni Advocacy Community to connect with colleagues and access additional advocacy resources. If you have any questions, please contact Mina Kato at mkato@case.org.