California Community Colleges sue Department of Education over CARES Act eligibility restrictions that block DACA students

Courtesy Image of Southwestern College

Southwestern College is holding 20 percent of its $4.62 million in federal CARES funds in reserve until the California Community College Chancellor’s Office resolves its lawsuit against the Department of Education. Students are still encouraged to apply.

By Colin Grylls

Southwestern College has been allotted $4.62 million in federal aid earmarked to go directly to students.

The California Community Colleges Chancellor’s Office filed a lawsuit against the Secretary of Education Betsy DeVos to make sure Southwestern and community colleges across the state can decide which students qualify for Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Chancellor Eloy Ortiz Oakley said the suit is an effort to permit colleges to award relief grants to any students they deem eligible, including undocumented students who qualify for Deferred Action for Childhood Arrivals (DACA) or AB 540.

“It is our hope that we stop the U.S. Department of Education from enforcing arbitrary—what we feel are arbitrary—eligibility restrictions on relief funds that Congress approved to mitigate the impact of COVID-19,” Oakley said in a virtual press conference with college media. “We will continue to stand firm behind our students, particularly our undocumented students, and advocate for them to receive the support that they deserve to be successful, and our campuses will continue to be a place of safety and stability for them.”

When the CARES Act was signed into law March 27, the $14 billion Higher Education Emergency Relief Fund (HEERF) was created. An April 9 letter sent from DeVos to college and university presidents said institutions had “significant discretion” on how to award HEERF funds and “the only statutory requirement” was that the funds cover costs related to campus disruptions caused by the coronavirus pandemic.

Emphasis on local control was by design, Oakley said. He said his office worked with Congress to write the language.

“There was every expectation—and we felt that the congressional intent had always been—that the funding would be provided to colleges, and then the colleges would be allowed the flexibility to determine who should get the emergency aid based on the need that they see in their classrooms and on the ground and in their communities,” Oakley said.

That changed on April 21, when the Department of Education issued a list of Frequently Asked Questions stating only students who qualify for Title IV financial aid were eligible to receive CARES grants. AB 540 and DACA students are ineligible for Title IV funds, as are students who have not filed FAFSA.

According to the complaint filed by the Chancellor’s Office, the change “likely excludes more than half of all students in the California community college system, including many identified as economically disadvantaged.”

Southwestern College Governing Board President Nora Vargas said more than 590 local applicants have already been deemed ineligible.

“First of all, I think it’s very shameful that the federal government and Betsy DeVos really created the restrictions for so many students not to be able to have access,” she said. “Because it’s this idea that local colleges will be able to make the decisions about where we need the disbursements, and it continues to emphasise the inequities that are in our system.”

Vargas said 20 percent of SWC’s allocated CARES funds will be held in reserve while the legal battle plays out. She said she anticipates the money will be distributed throughout the summer and fall, hopefully to students who are currently ineligible.

Eligible SWC students are still encouraged to apply for CARES Act funds—more than 1,600 already qualified for the $200 to $700 grants. Distribution will be on a first-come, first-serve basis.

While DACA and AB 540 students cannot currently receive federal CARES grants, they are still eligible for state and local funds. The SWC Cares grant, for example, made $118,000 available to students, with the ASO adding $20,000. Unfortunately, Vargas said, that money is quickly disappearing.

“Our DACA and AB540 students are going to be able to be funded through the Southwestern College Cares emergency grant,” she said. “So I mean the need is really great, the college has already received 500 applications for the Southwesern College Cares grant, and it exceeds what’s available.”

The maxed out local grant mirrors what Oakley said about prohibiting large segments of the student population from accessing federal funds—it strains state and local funds.

“What we hope is that the restriction is lifted and that makes it a lot easier for our colleges to use those federal funds to provide emergency aid and not have to pull funds from somewhere else, which at the end of the day pulls funds from other students who are also needy, who are also deserving of the support that the state is providing,” Oakley said.

On April 21, the same day the FAQ was issued, DeVos sent another letter to college and university presidents regarding the release of the second half of formula grants for “Recipient’s Institutional Costs.” Of those funds, Southwestern College was awarded another $4.62 million to help the school transition to remote learning.

“These expedited awards reflected my top priority in administering the CARES Act: to get support to those most in need as quickly as possible,” she wrote.