CASE Shares Key Policy Priorities with Incoming Biden-Harris Administration

On January 13, 2021, CASE President and CEO sent a letter to President-Elect Joe Biden and Vice President-Elect Kamala Harris outlining important legislative and regulatory issues impacting advancement offices at U.S. schools, colleges, and universities.

In addition to expressing support for further COVID-19 relief, CASE urged the Biden-Harris administration to support the following legislative priorities in the letter:

• Charitable Giving – Support permanently extending and expanding the temporary $300 universal charitable deduction for non-itemizers ($600 for joint filers) that was included in the year-end COVID-19 relief bill. Additionally, CASE urged the administration to avoid placing any additional limitations on the charitable deduction. CASE also voiced support for the bipartisan Legacy IRA Act, legislation that would expand the current IRA charitable rollover by allowing individuals age 65 or over to direct up to $400,000 annually from their individual retirement accounts to colleges and universities through split-interest entities.
• Net Investment Income Excise Tax – Repeal the misguided net investment income excise tax (also known as the “endowment tax”), enacted as part of the Tax Cuts and Jobs Act of 2017, that requires private colleges and universities with more than 500 tuition-paying students and endowment assets of at least $500,000 per student to pay a 1.4 percent tax on their net investment income.

CASE also encouraged the incoming administration to take quick action to rectify measures that adversely affect educational institutions and the students they serve, including the following priorities:

• Foreign Gift Disclosure – Withdraw the recent information collection request and notice of interpretation, and begin a formal regulatory rulemaking process, with public notice and comments, to ensure clarity and compliance with Section 117 foreign gift reporting.
• International Students – Withdraw the Department of Homeland Security’s proposed rule that would limit an international student’s “duration of status” and create a fixed duration of admission, and any other measures that restrict the international exchange of students and scholars.
• Deferred Action for Early Childhood Arrivals – Reinstate the Deferred Action for Early Childhood Arrivals (DACA) program protections that were repealed by the Trump administration and make the DACA protections permanent.
• Racial Justice  – Repeal the Trump administration’s Executive Order on Race and Sex Stereotyping and support policies that affirm and promote diversity, equity, inclusion, and belonging at educational institutions.

As CASE works with the incoming Administration and Congress on issues affecting educational advancement, you can keep updated on the latest news and developments by subscribing to the CASE Advocacy Network.

Reminder: Foreign Gift Reporting Deadline is January 31, 2021

Per Section 117 of the Higher Education Act, U.S. colleges and universities that receive charitable gifts from a foreign source, the value of which is $250,000 or more within a calendar year, must file a disclosure report with the U.S. Department of Education (Department) twice a year. As a reminder, disclosure reports covering July 1, 2020 to December 31, 2020 are due on January 31, 2021. Institutions must submit their foreign gift reports using the new online reporting system announced by the Department in June 2020.

See the Department’s fact sheet to understand what information must be reported and visit CASE’s Foreign Gift Reporting web page for additional resources around Section 117.

Year-End COVID-19 Relief Bill Includes Education Funding, Extension of Universal Charitable Deduction

On December 27, 2020, President Trump signed into law a combined $900 billion COVID-19 relief and $1.4 trillion omnibus appropriations package (H.R. 133) to fund the government through September 2021. Here is a brief summary of major provisions in the 5,593-page bill and how they impact educational institutions:

• $82 Billion for Education – Similar to the breakdown in the CARES Act from March, funding for education is divided into three major areas.

1. $54.3 Billion for Public K-12 schools – Allocates funding to K-12 public schools to help with reopening-related expenses.
2. $4.05 Billion for Governors – Provides funding to governors to use at their discretion, including $2.75 billion for services at private K-12 schools. Funding for private schools will be administered by state educational agencies; upon applying, schools will be required to report the number of low-income students that are enrolled and whether they benefited from previous small business loans. To be eligible, private schools must declare that they have not and will not apply for PPP loans after the bill is enacted.
3. $22.7 Billion for Higher Education – Provides $22.7 billion for the Higher Education Emergency Relief Fund, including $20.2 billion for public and private nonprofit colleges and universities. $1.7 billion is set aside for historically black colleges and universities (HBCUs), tribal colleges, and other minority-serving institutions (MSIs). Note that institutions that were subject to the endowment excise tax for tax year 2019 will have their funding allocation reduced by 50% and may only use funds for certain purposes. However, the Secretary may waive the requirement in certain cases where institutions demonstrate need for additional funding.

• Charitable Giving Incentives – Extends the $300 universal charitable deduction for non-itemizers through 2021 and also allows joint filers to deduct up to $600. This deduction only applies to cash gifts and does not apply to cash gifts to donor-advised funds or supporting organizations. Note that the $600 deduction for joint filers is only for 2021 – non-itemizing taxpayers claiming charitable deductions in 2020 are still limited to $300 whether single or joint filers. Additionally, the bill extends the temporary increase of limits for cash gifts through 2021 (100% of Adjusted Gross Income for individuals, 25% of taxable income for corporations).
• Paycheck Protection Program – Provides $284 billion in additional PPP loans and extends through March 31, 2021. Also, the bill provides a second PPP forgivable loan to nonprofits, including schools, colleges, universities, or affiliated organizations with 300 or fewer employees that have exhausted their initial PPP loan and can show a loss of 25% of gross receipts in any quarter during 2020.

The bill also includes another round of direct payments, unemployment benefits, and funding for COVID-19 vaccines, testing, and tracing. For more information, visit CASE’s COVID-19 Response Legislation page and the House Committee on Appropriations' summary of the coronavirus relief provisions.

While the year-end bill includes some provisions beneficial to educational institutions, the total amount of relief aid for education falls short of the previous House, Senate, and White House proposals and the $120 billion in relief for colleges and universities requested by the higher education community.

Ahead of inauguration, President-Elect Biden announced the details for his American Rescue Plan, a $1.9 trillion economic relief package, which includes $170 billion more in education relief funding. The total amount includes $130 billion for K-12 schools, $35 billion for higher education, and $5 billion for Governors to use for education. President-Elect Biden urged Congress to take up and pass the proposal to deliver necessary aid in response to the pandemic.

CASE, with our charitable and education partners, will continue to advocate for additional relief for schools, colleges, and universities in the 117th Congress and Biden-Harris administration. As Congress begins work in 2021, stay on top of the latest news and developments by joining the CASE Advocacy Network.

Register for the 2021 Higher Education Government Relations Conference (HEGRC)

As a reminder, the 2021 Higher Education Government Relations Conference (HEGRC) will take place virtually on February 12, 19, and 26, 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) to provide sessions targeted to the needs of these roles:

• Government relations professionals
• Community relations professionals
• Public affairs professionals
• Association and campus-based advocates/lobbyists
• Anyone interested in advocacy that supports public higher education

The conference will focus on the impact of the coronavirus pandemic on institutions and students, state and federal budgets, lessons learned from virtual-based advocacy, and the future of higher education.  

For more information on the schedule and to register for the 2021 Higher Education Government Relations Conference, visit https://www.aascu.org/meetings/hegrc21/.