Office of Postsecondary Education (OPE) : Higher Education Emergency Relief Fund (HEERF) Proprietary Institution Grant Funds for Students Assistance Listing Number 84.425Q | ED GRANTS 011521 005

Opportunity Information: Apply for ED GRANTS 011521 005

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 was created using funding provided by the Coronavirus Response and Relief Supplemental Appropriations Act, 2021 (CRRSAA), which was signed into law on December 27, 2020. CRRSAA provided about $22.7 billion in HEERF support for higher education overall, building on earlier CARES Act programs while also authorizing new streams of funding. This particular program is labeled “Proprietary Institution Grant Funds for Students” and is listed under Assistance Listing Number (formerly CFDA) 84.425Q.

The focus of 84.425Q is narrow and student-centered: eligible proprietary (for-profit) institutions of higher education may apply for funds that can only be used to provide direct financial aid grants to students. The Department estimated roughly $680 million would be available for this program. Rather than being a competition based on narrative scoring, allocations for eligible institutions are calculated using a statutory formula referenced in CRRSAA section 314(a)(1)(A) through (F). In other words, the amount an institution can receive is driven by the federal formula and the institution’s place on the Department’s published allocation table, not by proposing a new project or service model.

A key restriction is how the money may be spent. Under CRRSAA section 314(d)(7), awards under this program may only be used for student financial aid grants. Institutions cannot use these funds for institutional expenses, administrative costs, lost revenue, technology upgrades, or payroll. The dollars must flow to students as grants. Those student grants may be used for any component of a student’s cost of attendance or for emergency costs arising due to coronavirus. The notice gives concrete examples of allowable uses, including tuition, food, housing, health care (including mental health care), and child care. Importantly, the program explicitly allows aid to students who are enrolled exclusively in distance education, which matters because many students were learning remotely during the pandemic.

The program also sets an equity-driven expectation for awarding aid: institutions must prioritize students with exceptional need. The notice highlights Pell Grant recipients as a prime example of the population that should be prioritized, signaling that schools should use financial need as a central decision factor when distributing grants. While the summary does not spell out the institution’s exact selection methodology, the “prioritize exceptional need” requirement is a core condition tied to awarding these student grants.

Eligibility is limited to proprietary institutions of higher education as defined in section 102(b) of the Higher Education Act of 1965 (20 USC 1002(b)). The notice additionally clarifies that some proprietary institutions that did not receive a CARES Act HEERF award under section 18004(a)(1) may still apply for and receive these CRRSAA (a)(4) funds, as long as they appear on the Department’s CRRSAA section 314(a)(1) allocation table. That detail is meant to ensure eligible proprietary schools are not automatically excluded just because they were not funded under the earlier CARES Act distribution.

Timing and compliance requirements are emphasized. Under CRRSAA section 314(f), institutions were required to apply within 90 days of the publication of the notice, and the opportunity listing shows an original closing date of April 15, 2021. The summary also warns that institutions that have not complied with CARES Act HEERF reporting requirements may still receive an award, but could face restrictions on accessing the funds. Specifically, the Department may place the institution in a “stop payment” status that prevents drawdown of awarded funds until outstanding CARES Act reporting obligations are satisfied. This makes reporting compliance a practical prerequisite to actually using the money, even if an award is technically made.

Overall, 84.425Q is best understood as a targeted pandemic relief funding stream for proprietary colleges and universities, designed solely to push emergency grant aid directly to students affected by coronavirus-related disruptions. The main operational responsibilities for institutions are to apply by the required deadline, follow the statutory allocation process, distribute funds as student grants (not institutional spending), prioritize students with exceptional financial need, and stay current on federal HEERF reporting so awarded funds can be accessed without payment restrictions. For the most authoritative and detailed requirements (including application steps, submission instructions, reporting, and any additional conditions), the Department directs applicants to the official Federal Register notice and the Department’s standard discretionary grant application instructions referenced in the announcement.

• The Department of Education in the education sector is offering a public funding opportunity titled "Office of Postsecondary Education (OPE) : Higher Education Emergency Relief Fund (HEERF) Proprietary Institution Grant Funds for Students 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 2021-01-14.
• Applicants must submit their applications by 2021-04-15. (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 011521 005

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