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25. Question: Can ARP funding be spent on payroll to defray costs associated with
transitioning to remote learning, defraying expenses to hire more staff, or expanding class
sections as a result of the impact of COVID-19?
Answer: Yes, under certain circumstances. Institutions may use ARP, CRRSAA funds,
and unspent CARES Act funds to pay for certain payroll costs, including employee
benefits, if (1) such costs are newly associated with coronavirus and (2) the costs were
incurred on or after March 13, 2020, the date of the declaration of the national emergency
due to the coronavirus. Consistent with these principles, an institution may also use ARP
funds to pay students for internships and job training experiences that are aligned with
local coronavirus-related recovery needs.
For example, HEERF grant funds can be used to pay for any new staff, or repurposed
staff, if the new or repurposed staff’s work is associated with coronavirus (e.g., contact
tracers, IT staff, additional medical personnel, teaching assistants, offering smaller class
sizes to support social distancing, etc.). HEERF grant funds can also be used to pay the
salaries (from March 13, 2020 onward) of staff who were unable to work during a period
of any full or partial campus closures due to the pandemic (e.g., cafeteria workers,
maintenance staff, bookstore clerks, etc.). Finally, any additional/overtime work any staff
incurred from March 13, 2020 onward associated with coronavirus (e.g., deep cleaning of
dormitories, additional trainings to assist with transitioning to online learning, etc.) can
also be paid for with HEERF grant funds.
In using HEERF grant funds to transition to online and remote learning, institutions
should carefully document how the funds were used to respond to the pandemic
consistent with 2 CFR § 200.334. If an institution is accelerating a previously planned
expansion of online learning, the institution should separate out the costs associated with
the acceleration as a result of the coronavirus and only charge those costs to the HEERF
grant.
26. Question: Can my institution use ARP or other HEERF institutional grant funds to
discharge student debt or unpaid balances to their institutions?
Answer: Yes. Institutions may discharge student debt or unpaid balances by discharging
the complete balance of the debt as lost revenue and reimbursing themselves through
their HEERF institutional grants or by providing additional emergency financial grants to
students (with their permission). The Department strongly encourages institutions to
discharge such debt. The following examples are listed to provide guidance to institutions
on handling these situations:
Example 1: Transcript withholding: A student who was enrolled in an
institution at any point on or after March 13, 2020 with a now-completed degree
owes an unpaid debt to the institution and could not obtain an official transcript
until the debt is paid off.