Washington universities receive $191M in CARES funding, face revenue drops from room and board
Washington's universities have been allocated more than $191 million in funding from the Coronavirus Aid, Relief and Economic Security (CARES) Act after losing on the order of $100 million in room and board revenues.
Of the federal funding, at least $95.7 million is reserved for grants to students, according to the U.S. Department of Education, which disclosed schools' allocations Wednesday. The only requirement for the rest of the funding is that it be used to cover expenses related to campus operations disruptions resulting from COVID-19.
The CARES Act is providing $14 billion in funds to higher education institutions across the nation, though schools must reserve at least 50 percent of their respective allocations to provide emergency financial aid directly to students. Higher education advocates and lobbying groups already are mobilizing to secure a second round of stimulus as schools brace for extended campus closures through the upcoming fall semester. In an April 9 letter addressed to Congressional leaders, a consortium of more than 40 college and university groups representing thousands of U.S. schools said the continued financial fallout will require another $46.6 billion in emergency federal support.
Across the country, universities have faced about $11 billion in lost room and board revenue as classes are held online and students move home, according to a Business Journal approximation. That estimate is likely an overshoot based on spot checks with individual Washington state colleges. The analysis of roughly 800 U.S. colleges and universities determined that about a quarter of universities’ student-related revenue – some $44 billion in payments during the most recent fiscal year – came from “auxiliary enterprises” in the form of goods and services sold to students and faculty. The vast majority of that revenue was from on-campus housing and food services, according to data provided by the U.S. Department of Education.
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