Office of Postsecondary Education (OPE): Under the Higher Education Emergency Relief Fund (HEERF), Section 2003 of the American Rescue Plan Act, 2021 (ARP) Assistance Listing Number 84.425Q | ED GRANTS 051321 003

Opportunity Information: Apply for ED GRANTS 051321 003

This grant opportunity comes from the U.S. Department of Education, Office of Postsecondary Education (OPE), under the Higher Education Emergency Relief Fund (HEERF). It is tied specifically to Section 2003 of the American Rescue Plan Act of 2021 (ARP), Public Law 117-2, and is identified as Assistance Listing Number (ALN) 84.425Q. The basic purpose is to deliver federal emergency aid to certain institutions so they can pass that funding directly to students as emergency financial aid grants related to the disruptions and costs caused by the coronavirus pandemic.

The ARP expanded HEERF funding on a large scale, making about $39.6 billion available nationally for higher education through HEERF (often referred to as HEERF III). Even though the ARP provided the new money, it did so by using program structures that already existed under the Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA), Public Law 116-260. This particular notice focuses on one slice of HEERF III funding: the ARP (a)(4) program called Proprietary Institution Grant Funds for Students. In practical terms, it opened an application path for proprietary (for-profit) institutions of higher education that meet the statutory definition in section 102(b) of the Higher Education Act of 1965 (20 U.S.C. 1002(b)) and that did not previously receive funding under CRRSAA section 314(a)(4).

The estimated amount available for this proprietary-institution student-aid stream is approximately $396 million. Rather than being a typical competitive discretionary grant where applicants propose activities and are scored, the funding amounts for eligible proprietary institutions are calculated using a statutory formula. The notice explains that allocations will be calculated using the formula described in CRRSAA section 314(a)(1)(A) through (F), while the total amount set aside for this (a)(4) stream is determined by ARP section 2003(4). In other words, eligibility and allocation are driven largely by the law and formula, and institutions apply to receive the amount determined for them under those rules.

A central restriction of this opportunity is how the money can be used. Under CRRSAA section 314(d)(7), which continues to apply to these ARP (a)(4) funds, awards under the Proprietary Institution Grant Funds for Students program may only be used to provide emergency financial aid grants to students. The institution is essentially acting as the distributor of emergency grants, not using the funds for institutional operations, technology upgrades, or other campus expenses. The notice also makes clear that students enrolled exclusively in distance education are included, meaning institutions can award emergency grants to online-only students as well as those attending in person or in hybrid formats.

The allowable purposes for the student emergency grants are broad, as long as they relate to the student’s cost of attendance or emergency costs stemming from coronavirus. Examples explicitly listed include tuition, food, housing, health care (including mental health care), and childcare. This framing is meant to give institutions flexibility to respond to real student needs that emerged or intensified during the pandemic, while still keeping the funds tightly focused on direct student support.

The notice also establishes a prioritization expectation: when making emergency financial aid grants, institutions must prioritize students with exceptional need, such as students who receive Pell Grants. That does not necessarily mean only Pell recipients can receive aid, but it does mean institutions are expected to design their grant awarding approach so that the highest-need students are served first or receive greater emphasis, consistent with the federal direction in the program.

From a compliance standpoint, the notice highlights that drawing down any amount of these supplemental funds counts as acceptance of the ARP terms and conditions and the related Supplemental Agreement. Those terms and conditions are treated as binding requirements once the institution accesses the funds, and they are included as appendices to the official notice for reference. Institutions interested in applying are directed to rely on the version published in the Federal Register for authoritative requirements, including application procedures, submission instructions, any reporting or performance expectations, and official contacts. The notice also points applicants to the Department’s general instructions for discretionary grant applicants published February 13, 2019 (84 FR 3768), which provides standard submission and administrative guidance.

Key identifying details included in the listing are the opportunity number ED GRANTS 051321 003, the assistance listing reference 84.425 (with this specific program labeled 84.425Q), and an original closing date of March 7, 2022. The eligible applicant emphasis in the narrative is proprietary institutions of higher education under HEA 102(b), specifically those that did not previously receive CRRSAA 314(a)(4) funds, since the purpose of the notice is to extend ARP (a)(4) access to that group and route the money strictly into emergency financial aid grants for students impacted by coronavirus-related costs.

• The Department of Education in the education sector is offering a public funding opportunity titled "Office of Postsecondary Education (OPE): Under the Higher Education Emergency Relief Fund (HEERF), Section 2003 of the American Rescue Plan Act, 2021 (ARP) Assistance Listing Number 84.425Q" and is now available to receive applicants.
• Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 84.425.
• This funding opportunity was created on 2021-05-13.
• Applicants must submit their applications by 2022-03-07. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
• Eligible applicants include: Public and State controlled institutions of higher education, Private institutions of higher education, Others.

Apply for ED GRANTS 051321 003

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