ED to Limit CARES Act Funding to Title IV-Eligible Students

ED is scheduled to soon publish its interim final rule that will clarify student eligibility for receiving aid and funding assistance under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136). The interim final rule, which will be effective as soon as it is officially published in the Federal Register, states that only Title IV-eligible students can receive the funding, excluding undocumented and certain other student populations. According to the rule, ED claims that since Congress did not define “student” within the CARES Act, ED must exercise its own interpretation of the law, concluding that “Congress intended the category of those eligible for ‘emergency financial aid grants to students’ in section 18004 of the CARES Act to be limited to those individuals eligible for Title IV assistance.” ED had earlier issued reporting requirements and interim guidelines on CARES Act fund distribution, which lacked the “force and effect of law,” as noted in a May 21 statement, causing uncertainty as to whether or not ED would enforce the restrictions. The interim final rule aims to clarify this confusion, as it will carry the full force of law. Meanwhile, the policy faces legal challenges, with court decisions still pending in California and the policy blocked in Washington state. AACOM will continue to closely monitor CARES Act funding implementation and provide updates to membership as more information becomes available.