American Rescue Plan Act provides much needed funding to the education community

By Kaitlyn Dunphy, Esq.

On March 11, President Joe Biden signed the American Rescue Plan Act (ARP) into law. The act is a $1.9 trillion package meant to address the challenges the nation is facing because of the COVID-19 pandemic. The ARP includes significant funding for education, providing nearly $170 billion to public schools.

New Jersey will receive a total of $3.7 billion in educational funding, with $2.7 billion allotted for K-12 schools and $901.5 million toward higher education. In addition, our state and local governments will receive $10.2 billion in aid from the federal government.

The funding New Jersey schools and colleges receive can be used to institute mitigation measures that will increase safety, such as modifying spaces and reducing class sizes to comply with physical distancing recommendations, updating of HVAC and ventilation systems, and hiring additional staff, such as custodians, school nurses, guidance counselors, bus drivers and bus aides.

ARP funding can also be allocated to improve the mental health services available to students. The act recognizes the need to support students’ social and emotional health, particularly during the challenging times we have been experiencing.

NEA and NJEA member advocacy led to ARP

The passage of the American Rescue Plan Act would not have been possible without the advocacy of  NEA, our NJEA members, and the larger NEA membership. In the months preceding the passage of the Act, NEA members wrote hundreds of thousands of messages and placed thousands of calls to their senators and representatives advocating for Congress to support this important piece of legislation.

“This historic legislation not only provides the resources to help every school building put in place the effective measures needed to keep students and educators safe,” said NEA President Becky Pringle. “It also makes extraordinary investments that will lift countless children and families out of poverty and works to address the immense inequities that have systematically affected the most vulnerable students and communities of color.”

The ARP earmarks $7 billion nationwide to help close the digital divide by purchasing the technology, both devices and internet access, necessary for students to access virtual learning. This funding will help provide the tools needed for all students to participate in remote learning.

Needs specific to higher education are also addressed in the ARP. Institutions are required by the ARP to spend at least a portion of the ARP funding on emergency financial aid grants. Colleges and universities are required to at least match the amount of CARES money they dedicated for that purpose. The act also includes a provision that forgoes taxation on federal student loan debt forgiven between Dec. 31, 2020 and Jan. 2, 2026.

This act provides much needed funding to assist our education system with the challenges that have been dealt. NJEA will work with our local associations to follow the use of ARP funding to ensure it is being used in ways that best benefit our school communities. As NEA President Becky Pringle put it, “After months of tireless advocacy, educators gratefully applaud this bill. Now, state and local leaders must work together to ensure all students receive the support, tools and resources they need so that school buildings and college campuses can reopen—and stay open—safely and equitably.” 

Kaitlyn Dunphy is an associate director of NJEA Legal Services and Member Rights in the NJEA Executive Office. She can be reached at kdunphy@njea.org.

In summary

$3.7 billion: Total educational funding for New Jersey under the ARP

        $2.7 billion: ARP funding for N.J. K-12 schools

     •.  $901.5 million: ARP funding for NJ higher education

$10.2 billion: ARP aid to state and local funding in New Jersey

Tags: