Sneak Preview: Updated HEERF III FAQ Addresses Program Extensions

(The following was excerpted from a recent Thompson Grants Compliance Expert article.) The Department of Education (ED) recently updated its Frequently Asked Question (FAQ) document related to Higher Education Emergency Relief Fund (HEERF) dollars issued under the American Rescue Plan Act (ARPA) (Pub. L. 117-2), known as HEERF III funds, to clarify the time period for obligating these funds and options available if an institution of higher education (IHE) needs a time extension.

Under ARPA, Congress appropriated about $39.6 billion in HEERF III funds to prevent, prepare for and respond to the COVID-19 pandemic. It was the third allocation of funding following that provided under the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. 116–136) (i.e., HEERF I) and the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 (Pub. L. 116-260) (i.e., HEERF II).

After issuing the initial HEERF III FAQ in May 2021 to assist recipients in overseeing these funds, ED recently updated three questions within the document. In response to a question asking how long an IHE has to expend its HEERF III grant funding, ED now states in the FAQ that the performance period of all open HEERF grants as of April 4 with a balance greater than $1,000 is extended through June 30, 2023. It noted that the blanket extension is not considered a no-cost extension under uniform guidance provisions at §200.308(e)(2) and ED regulations at 34 C.F.R. §75.261.

HEERF III recipients, however, may extend this period even longer, if needed. ED “understands that some grantees, even given the emergency nature of the HEERF grant, may be unable to expend funds by this time,” the agency adds. “Consequently, no-cost extensions (NCEs) of up to 12 months are available as provided for at §200.308(e)(2). NCEs extend a grant’s period of performance, [but] may not be exercised merely for the purpose of using unobligated balances.”

The FAQ also addressed extensions for HEERF (a)(2) grant funds for construction, renovation and real property projects that were provided through the Consolidated Appropriations Act of 2022 (Pub. L. 117-103). HEERF (a)(2) grantees with approved projects may receive a project period extension beyond June 30, 2023, for the sole purpose of completing approved projects. Construction or renovation projects that address a student or institutional need that has arisen in whole or part as a result of the COVID-19 pandemic, such as those designed to improve ventilation or allow for greater physical distancing, are allowable uses of HEERF (a)(2) grant funds.

(The full version of this story has now been made available to all for a limited time here.)

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