CASE Submits Comments on U.S. Department of Education’s Section 117 Notice of Interpretation

On November 13, 2020, the U.S. Department of Education (Department) issued a Notice of Interpretation (NOI) and request for public comments around the enforcement of Section 117 of the Higher Education Act. Section 117 requires higher education institutions to file a disclosure report with the department if they receive gifts from or enter into a contract with a foreign source the value of which is $250,000 or more. This requirement applies to gifts considered alone or in combination with all other gifts from or contracts with that foreign source within a calendar year.

Prior to issuing the NOI, the Department released a report on institutional compliance with Section 117 that outlines steps the Department has taken to enforce Section 117. The report also suggests that colleges and universities failed to disclose $6.5 billion in previously unreported foreign money.

Key takeaways from the NOI, which went into effect on November 13, 2020, include:

• Institutions are required under their Program Participation Agreements (PPA) to report Section 117 data. If an institution fails to timely and accurately report Section 117 information, the Department has authority to implement a range of corrective measures, including termination of the institution's Title IV participation.
• The Department asserts it has authority to administratively subpoena information when investigating possible violations of Section 117, impose fines and other enforcement measures.

In addition to supporting comments led by the American Council on Education (ACE), CASE submitted comments to the Department expressing concern that the NOI is counterproductive in supporting and ensuring institutional compliance and transparency with Section 117 foreign gift reporting and exceeds the statutory authority Congress granted the Department.

As CASE continues to encourage the Department to provide needed guidance on Section 117, visit our Foreign Gift Reporting web page and join the CASE Advocacy Network for the latest developments.

Congress Seeks COVID-19 Relief Deal Before the End of the Year

On December 14, a bipartisan group including U.S. Senators Joe Manchin (D-WV), Susan Collins (R-ME), Mark Warner (D-VA), Bill Cassidy (R-LA), Jeanne Shaheen (D-NH), Lisa Murkowski (R-AK), Angus King (I-ME), Mitt Romney (R-UT), Maggie Hassan (D-NH), Rob Portman (R-OH), and Dick Durbin (D-IL) and Problem Solvers Caucus Co-Chairs Representatives Josh Gottheimer (D-NJ-5) and Tom Reed (R-NY-23) released the details of two bipartisan COVID-19 relief bills, totaling $908 billion, in an effort to pass a deal before the end of the year.  

The first bill is the $748 billion Emergency Coronavirus Relief Act of 2020, which includes $82 billion for education, extended student loan relief, unemployment assistance, and COVID-19 testing and tracing. The second bill, the State and Local Support and Small Business Protection Act of 2020, provides $160 billion in funding for state and local governments and liability protections.

As negotiations on coronavirus relief continue, CASE joined efforts led by the American Council of Education (ACE) urging congressional leaders to provide at least $120 billion in supplemental spending to support students and higher education institutions dealing with the financial impact of the pandemic. CASE also signed on to a letter led by the Charitable Giving Coalition calling on lawmakers to expand and extend the $300 above-the-line, universal charitable deduction in the COVID-19 relief package.

To stay updated on the latest developments around COVID-19 relief negotiations, subscribe to the CASE Advocacy Network. 

Save the Date: Higher Education Government Relations Conference (HEGRC) February 2021

CASE is proud to partner with the American Association of Community Colleges (AACC), American Association of State Colleges and Universities (AASCU), and the Association of Public and Land-Grant Universities (APLU) on the 2021 Higher Education Government Relations Conference (HEGRC), which will take place virtually on February 12, 19, and 26, 2021.

The conference is designed for higher education professionals from public institutions and state systems who are interested in connecting with colleagues, staying informed on state and federal trends, and hearing perspectives on the future of higher education. The theme for the upcoming conference is Higher Education and a Renewed American Compact.

For more information and to register for the 2021 Higher Education Government Relations Conference, please visit the conference website.