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The U.S. Education Department announced new grants under the American Rescue Plan and also provided new guidance on how colleges can use American Rescue Act funds to meet students’ basic needs.

The grants are $198 million to support colleges and universities with the greatest unmet needs related to the COVID-19 pandemic. In awarding funds, the department will prioritize community colleges and rural institutions of higher education that serve a high percentage of low-income students and have experienced enrollment declines since the start of the pandemic. Applications will be available next week. Funds will be awarded in late spring. The department is encouraging applications in:

  • Evidence-based practices to monitor and suppress coronavirus.
  • Strategies for addressing students’ basic needs.
  • Support for students’ continued enrollment and re-enrollment.
  • Forgiveness of institutional debts.
  • The expansion of programs that lead to in-demand jobs.