White House, Congress Unlikely to Agree on COVID-10 Relief Package Ahead of Election

With House Democrats, Senate Republicans, and the White House divided over costs and priorities, the chances of Congress passing another COVID-19 relief package ahead of the election is low.

On October 1, the U.S. House passed an updated, $2.2 trillion version of the HEROES Act (H.R. 8406), also known as HEROES 2.0, their latest attempt to demonstrate support for their priorities as relief package negotiations continue. While H.R. 8406  would provide $39 billion to higher education institutions, the amount is significantly below the education community’s $120 billion request in aid for colleges, universities, and students. Relief funding for K-12 schools, and state and local governments is also included in the bill. For more information on specific provisions, visit the House Appropriations Committee’s summary.   

On the other side of Capitol Hill, Senate Republicans unveiled another $500 billion COVID-19 relief package on October 19. The bill is almost identical to similar legislation that the Senate Republicans introduced in September and includes an expansion of the temporary above-the-line, universal charitable deduction from $300 to $600 for individuals and $1,200 for joint filers. As with the previous effort, the Senate GOP bill is unlikely to get the votes necessary to proceed to consideration in the chamber.

CASE will continue to push Congress to enact COVID relief legislation as soon as possible. 

Executive Order Targets Racial Sensitivity Training

On September 22, President Trump signed an Executive Order on Combating Race and Sex Stereotyping, which applies to executive departments and agencies, Uniformed Services, federal contractors, and federal grant recipients, including schools, colleges, and universities. The order prohibits agencies, contractors, and grantees from conducting workplace racial sensitivity and implicit bias training. In response, CASE joined ACE and other higher education associations in efforts urging the withdrawal of the Executive Order. Visit Independent Sector’s FAQs resource for more information.

Meanwhile, at the U.S. Department of Education, Secretary Betsy DeVos is pursuing an investigation into Princeton University for recognizing that racism is a significant problem in higher education. CASE shared opposition to the Department’s inquiry in a letter led by ACE.

While we continue to work with our partners on issues affecting educational advancement, subscribe to the CASE Advocacy Network and visit our U.S. COVID-19 Response Legislation for the latest developments.

Treasury and IRS Publish Final Rules on the Net Investment Income Excise Tax

On September 18, 2020, the Internal Revenue Service (IRS) and the Department of the Treasury (Department) published final rules for the net investment income excise tax, also known as the endowment tax, on certain private colleges and universities that was created under the 2017 Tax Cuts and Jobs Act.

The 2017 law stipulates that private colleges and universities with more than 500 tuition-paying students and endowment assets of at least $500,000 per student must pay a 1.4 percent tax on their net investment income.

The final regulations provide guidance on determining if an institution is subject to the tax and how to calculate the tax owed. Notably, the final regulations recognize that colleges and universities are not strictly comparable to private foundations, and the guidelines streamline the requirements to gather basis information from donors of gifts of appreciated property. Visit the National Association of College and University Business Officers’ (NACUBO) ongoing analysis for more information.

While the IRS and Department recognized some concerns raised by the higher education community, CASE remains opposed to the measure and continues to support efforts to repeal the tax. 

Department of Homeland Security Announces Proposed Rule on International Student Visas

On September 25, 2020, the Department of Homeland Security (DHS) announced a new proposed rule that would limit the length of international student visas and establish additional requirements for international students applying for extensions to stay and continue their studies in the United States.

Ultimately, the proposed rule would have adverse effects on international students who attend U.S. schools, colleges, and universities. CASE is working with the National Association of Independent Schools (NAIS), American Council on Education,  and other education association partners to submit comments in opposition to the proposed rule.

Institutions can submit written comments and related material on or before October 26, 2020 at https://www.federalregister.gov/documents/2020/09/25/2020-20845/establishing-a-fixed-time-period-of-admission-and-an-extension-of-stay-procedure-for-nonimmigrant.

To stay updated on the latest developments surrounding international students and the proposed rule, subscribe to the CASE Advocacy Network.