ANALYSIS OF HOUSE 2021 BUDGET RECONCILIATION COVID-19 RELIEF BILLS - APLU
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ANALYSIS OF HOUSE 2021 BUDGET
RECONCILIATION COVID-19 RELIEF BILLS
On February 5, Congress passed the FY2021 budget resolution to unlock reconciliation. The measure
advanced the Senate on a 51-50 vote and cleared the House by a vote of 219-209. The resolution directs
authorizing committees to draft sections of a budget reconciliation bill based on President Biden’s $1.9
trillion COVID-19 relief proposal.
This week, House Democratic committee chairs released and marked up within their committees a
series of reconciliation bills despite opposition from Republicans in both chambers who recommend a
slimmer approach and argue the estimated $1.9 trillion price tag—approximately equal to the
Coronavirus Aid, Relief, and Economic Security (CARES) Act enacted last March and $1 trillion below the
Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA) enacted this past
December—is too big.
The various reconciliation bills provide supplemental relief for institutions of higher education to
address the needs of students and institutions, aid to state and local governments, equal access to tax
relief provided through previous COVID-19 relief bills, funding for COVID-19 vaccines, testing and
tracing, support for distance learning for K-12, and more.
House Speaker Nancy Pelosi aims to have the full measure passed within two weeks to give the Senate
time to complete its work before enhanced unemployment insurance benefits expire on March 14.
Below are preliminary analyses of five budget reconciliation bills with provisions specific to the higher
education community—Agriculture; Education and Labor; Oversight and Reform; Transportation and
Infrastructure; and Ways and Means. APLU will develop a final analysis if legislation passes Congress and
is signed into law.
The House Science Committee has not yet announced how it will use its $800 million allocation. APLU
will update this analysis upon release of additional information.
House Budget Targets and Reconciliation Instructions
Committee Spending Level
Agriculture $16.1 billion
Education and Labor $357.9 billion
Energy and Commerce $188.5 billion
Financial Services $75 billion
Foreign Affairs $10 billion
Natural Resources $1 billion
Oversight and Reform $350.7 billion
Science, Space, and Technology $800 million
Small Business $50 billion
Transportation and Infrastructure $95.6 billion
Veterans’ Affairs $17 billion
Ways and Means $940.7 billion
Updated 2/24/2021I. AGRICULTURE
The Budget Resolution provided the Agriculture Committee with a budget target of $16.1 billion. The bill
was passed by the House Agriculture Committee on February 10. It provides $5 billion to the Secretary
of Agriculture for emergency grants for rural health care as well as aid to socially disadvantaged farmers,
ranchers, forest landowners, and groups. This section includes $1 billion to provide outreach, mediation,
financial training, capacity building training, cooperative development training and support, and other
technical assistance to socially disadvantaged groups. Specifically, the provision includes support and
supplement of research, education, and extension, as well as scholarships and programs that provide
internships and pathways to federal employment, at 1890s, 1994, Alaska Native serving, Native
Hawaiian serving, Hispanic serving, and 1862 insular area institutions.
Title I: Agriculture and Nutrition [Bill Text]
Subtitle A: Agriculture
Sec. 1002. Emergency Grants for This section provides $5 billion to the Secretary of Agriculture
Rural Health Care for emergency grants for rural health care for:
vaccine distribution; drugs and medical supplies to increase
medical surge capacity; reimbursement for COVID19 related
expenses; telehealth capabilities; temporary or permanent
structures to provide health care services; staffing needs to
vaccine administration or testing; and other efforts determined
to be critical to address the pandemic. Also, included in the bill
is section 1006, which aids socially disadvantaged farmers,
ranchers, forest landowners, and groups.
Sec. 1006. Assistance and support The bill provides the Secretary of Agriculture $1.01 billion to
for socially disadvantaged farmers, provide outreach, mediation, financial training, capacity
ranchers, forest landowners, and building training, cooperative development training and
operator groups. support, and other technical assistance to socially
disadvantaged groups.
Subsection (a)(6) allows for funds to support and supplement
research, education, and extension, as well as scholarships and
programs that provide internships and pathways to federal
employment at 1890s colleges and universities (including
Tuskegee University), 1994 institutions, Alaska Native serving
institutions and Native Hawaiian serving institutions, Hispanic-
serving institutions, and insular area institutions.
II. EDUCATION & LABOR
The Budget Resolution provided the House Education and Labor Committee with a budget target of
$357.9 billion, with $39.58 billion in funding dedicated to higher education. The bill would continue to
use the Higher Education Emergency Relief Fund (HEERF) to distribute this new aid and would use the
funding formula compromise reached in CRRSAA to allocate funds based upon several student FTE andheadcount measures. Compared to CRRSAA, the bill would increase the portion of funds dedicated to
public and private nonprofit institutions from 89 to 91 percent ($36.02 billion), while decreasing funds
dedicated to for-profit institutions to 1 percent ($396 million).
The bill would continue to reserve 7.5 percent of funds ($2.97 billion) for Historically Black Colleges and
Universities (HBCUs) and other Minority-Serving Institutions (MSIs), as well as 0.5 percent of funds ($198
million) for institutions the Secretary of Education determines have the greatest amount of unmet need.
Like the CARES Act, institutions would be required to use at least half of the primary new funds for
emergency financial aid grants to students (this is a key difference from CRRSAA). Further, all funds
allocated for exclusively online students must be allocated for emergency financial aid grants. The bill
would maintain the broader use of funds included in CRRSAA for both institutional aid and emergency
financial aid grants to students. The bill text specifies that institutions would solely determine which
students are eligible for emergency grants.
Finally, the bill includes new requirements that IHEs receiving funds under this section implement
evidence-based practices to monitor and suppress coronavirus in accordance with public health
guidelines. Institutions would also agree to conduct direct outreach to financial aid applicants about the
opportunity to receive a financial aid adjustment due to the recent unemployment of a family member
or independent student, or other circumstances.
Title II: Education and Labor [Bill Text, Summary, and Fact Sheet]
Subtitle A—Education Matters
Part 1—Department of Education
Sec. 2002. Higher Education Under the bill, public and private nonprofit institutions would
Emergency Relief Fund. receive funds via a formula and process resembling CRRSAA;
paragraph (1) would increase the portion reserved for these
institutions from 89 to 91 percent of HEERF funding ($36.02
billion).
Specifically, the funds would be distributed as follows:
• 37.5 percent based on FTE Pell recipients, not
exclusively enrolled in distance education courses prior
to the emergency;
• 37.5 percent based on headcount Pell recipients;
• 11.5 percent based on overall FTE students;
• 11.5 percent based on overall headcount of students;
• 1 percent based on FTE Pell exclusively online
recipients (may only be used for student grants); and
• 1 percent based on headcount Pell exclusively online
recipients (may only be used for student grants).
Institutions must provide at least half of funding in emergency
financial aid grants to students, as was required under CARES.
Further, all funds allocated for exclusively online students must
be allocated for emergency financial aid grants.In comparison to CRRSAA, paragraph (2) decreases the portion
reserved for for-profit institutions of higher education from 3
to 1 percent of funding ($396 million), which may only be used
for student grants.
The bill would continue to reserve 7.5 percent of funding
($2.97 billion) for HBCUs, MSIs, and institutions qualifying for
Strengthening Institutions.
The bill would further continue to reserve 0.5 percent of
funding ($198 million) for IHEs the Secretary determines to
have “greatest unmet needs” including “with large populations
of graduate students and institutions that of higher education
that did not otherwise receive an allocation.”
Paragraph (3) specifies that IHEs would solely determine which
students receive emergency financial aid grants.
Paragraph (5) requires that IHEs receiving funds under this
section implement evidence-based practices to monitor and
suppress coronavirus in accordance with public health
guidelines. Institutions would also agree to conduct direct
outreach to financial aid applicants about the opportunity to
receive a financial aid adjustment due to the recent
unemployment of a family member or independent student, or
other circumstances.
Sec. 2003. Maintenance of Effort The bill requires each state receiving K-12 funds to maintain
and Maintenance of Equity. spending in fiscal year 2022 and 2023 on higher education, at
least at the proportionate levels of the state’s spending on
those categories relative to the state’s overall spending,
averaged over fiscal years 2017, 2018, and 2019. The Secretary
of Education may waive maintenance of effort requirements
for the purpose of relieving fiscal burdens incurred by States in
preventing, preparing for, and responding to the coronavirus.
New maintenance of equity requirements included in this
section focus on State Education Agencies and local K-12 school
districts.
Sec. 2004. Outlying Areas. The bill would provide $850 million for grants to the outlying
areas.
Sec. 2005. Bureau of Indian The bill would provide $850 million for grants to Bureau of
Education. Indian Education-operated and funded elementary and
secondary schools and Tribal Colleges or Universities.Sec. 2010. Institute of Education The bill would provide $100 million for the Institute of
Sciences. Education Sciences (IES) to study learning loss.
Sec. 2013. Modification of Revenue The bill would modify the requirement in Sec. 487 of the Higher
Requirements for Proprietary Education Act (HEA) to require proprietary institutions to
Institutions of Higher Education. derive not less than ten percent of revenue from funds other
than federal education assistance funds, including from the GI
Bill.
Part 2—Miscellaneous
Sec. 2022. National Endowment for The bill provides $135 million to NEH. 40 percent of funding is
the Humanities (NEH) directed to state and humanities councils that support
humanities organizations programming. 60 percent is allocated
to grants and relevant administrative expenses that support
humanities organizations and programming.
III. OVERSIGHT & REFORM
The Budget Resolution provided the House Oversight and Reform Committee with a budget target of
$350.7 billion. The bill would create new State and Local Coronavirus Relief Funds, with 60 percent of
funds reserved for states and 40 percent for local governments to be split evenly between cities and
counties.
These new funds include broad definition of allowable uses, which would allow state and local
governments to respond or mitigate the public health emergency with respect to the coronavirus
disease or its negative economic impacts; cover costs incurred as a result of such emergency; replace
revenue that was lost, delayed or decreased as determined based on projections of the government as
of January 27, 2020, as a result of such emergency; or address negative economic impacts of such
emergency.
The United States Department of Treasury would continue to administer state and local funds.
Importantly, the bill does not include a deadline for the use of state and local funds—the relief is
available until expended. According to the bill, entities would have to provide a “certification” on the
use or need of the funds to the Treasury, and Treasury would be obligated to make the payments within
60 days (i.e., rather than providing a direct allocation, every entity must apply).
Title V: Oversight and Reform [Bill Text and Summary]
Subtitle A: Coronavirus State and Local Fiscal Recovery Funds
Sec. 602. Coronavirus State Fiscal The bill would reserve 60 percent of overall funds ($219.8
Recovery Fund. billion) for the Coronavirus State Fiscal Recovery Fund, which
includes support for states, Washington D.C., Tribes, and
Territories.
Of these funds, 195.3 billion for states and Washington D.C.
Every state would receive a minimum of $500 million, up to a
total $25.5 billion. Washington D.C. would receive $755 million.The bill would further reserve $4.5 billion for territories and
$20 billion for tribal governments.
Sec. 603. Coronavirus Local Fiscal The bill would reserve 40 percent of overall funds ($130.2
Recovery Fund. billion) for the Coronavirus Local Fiscal Recovery Fund, with
funding divided evenly between cities and counties.
IV. TRANSPORTATION & INFRASTRUCTURE
The Budget Resolution provided the House Transportation and Infrastructure Committee with a budget
target of $95.6 billion. As part of these funds, the bill would replenish FEMA’s Disaster Relief Fund with
$50 billion.
Title VII: Transportation and Infrastructure [Bill Text]
Subtitle A – Transportation and Infrastructure
Sec. 7001. Federal Emergency The bill provides $50 billion for reimbursement to state, local,
Management Agency tribal, and territorial governments dealing with ongoing
Appropriation. response and recovery activities from COVID-19, including
vaccination efforts, deployment of the National Guard,
providing personal protective equipment for critical public
sector employees, and disinfecting activities in public facilities
such as schools and courthouses.
V. WAYS & MEANS
The Budget Resolution provided the House Ways and Means Committee with a budget target of $940.7
billion and is considering nine legislative proposals under the budget reconciliation instructions. The tax
relief proposal, Subtitle G—Promoting Economic Security, includes several key tax provisions, as well as
changes to the $1,400 stimulus payments that could help college students and their families.
First, the bill includes one of APLU’s top tax priorities, ensuring public institutions of higher education
have equal access to tax relief provided through previous COVID-19 relief bills. The bill extends paid
leave tax credits to some public entities, including public universities. Unfortunately, due to limitations
with the budget reconciliation process, access to the tax credit was not made retroactive. Importantly,
while the tax credits have been extended, the paid leave mandate in the FFCRA has not been extended
in the bill. Institutions that choose to continue offering paid leave to their employees would be able to
claim the credit from March 31, 2021 through September 20, 2021.
Also, of note, the $1,400 stimulus payments would now include an additional $1,400 per dependent,
including non-child dependents. While previous bills limited stimulus payments to children aged 17 and
under, families with college-aged children would now be able to receive support for these dependents
as well.Subtitle G—Promoting Economic Security [Bill Text and Summary]
Part 1 – 2021 Recovery Rebates
Sec. 9601. 2021 Recovery Rebates The bill provides a credit of $1,400 for a single taxpayer
to Individuals. ($2,800 for joint filers), in addition to $1,400 per dependent. In
the case of this bill, a dependent includes both children and
non-child dependents. A taxpayer is eligible for a credit with
respect to any individual in the household for whom a Social
Security number is associated with such individual on the tax
return.
Part 5 - Credits for Paid Sick and Family Leave
Sec. 9641. Extension of Credits. The bill extends the expiration of the credits to September 30,
2021.
Sec. 9642. Increase in Limitations The bill increases the amount of wages for which an employer
on Credits for Paid Family Leave. may claim the paid family credit in a year from $10,000 to
$12,000 per employee.
Sec. 9648. Application of Credits to The bill amends the FFCRA and extends the paid leave tax
Certain Governmental Employers. credits to state and local governments and instrumentalities,
which includes public universities. (There are no limitations
placed on number of employees.)
Part 6 – Employee Retention Credit
Sec. 9651. Extension of Employee The bill extends the employee retention tax credit, as added by
Retention Credit. the CARES Act and expanded and extended in P.L. 116-260,
through December 31, 2021. After June 30th, the credit will be
structured as a refundable payroll tax credit against the
hospital insurance tax. (Changes made in CRRSAA now allow
public universities to claim the employee retention tax credit.)You can also read
