Ppr Int 48Cb2C05Dadfb4D2 Covid 19 Program Match Flexibility Letter To Gear Up Grantees Dc2 - Ppr Int 48Cb2C05Dadfb4D2 Covid 19 Program.

Summary

Letter of December 3, 2020 from the U.S. Department of Education’s Office of Postsecondary Education to GEAR UP grantee project directors, signed by Deputy Assistant Secretary Christopher J. McCaghren. Citing the impact of COVID-19 on budgets, it restates the match waiver flexibilities open to GEAR UP partnership grantees and, under section 3518(b) of the CARES Act, offers them to GEAR UP State grantees. The program normally requires grantees to provide not less than 50 percent of the cost of the program. Grantees may seek a waiver of up to 75% of the match for up to 2 years after an uncontrollable event, up to 50% for up to 2 years when matching funds are exhausted, or an extension of an existing waiver. For requests due to COVID-19 the Department will consider a retroactive waiver from March 13, 2020.

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                                 UNITED STATES DEPARTMENT OF EDUCATION
                                    OFFICE OF POSTSECONDARY EDUCATION



December 3, 2020

Dear GEAR UP Grantee Project Director:

Due to the continuing national emergency caused by Coronavirus Disease 2019 (COVID-19) and
the impact of COVID-19 on State, local, and grantee budgets, we at the Office of Postsecondary
Education (OPE) wanted to take this opportunity to reiterate the match waiver flexibilities that
are available to Gaining Early Awareness for Undergraduate Programs (GEAR UP) partnership
grantees and offer those same flexibilities to our GEAR UP State grantees.

As you are aware, the GEAR UP program requires that grantees provide, from State, local,
institutional, or private funds, not less than 50 percent of the cost of the program, which
matching funds may be provided in cash or in kind and may be accrued over the full duration of
the grant award period.1 This is commonly known as a dollar-for-dollar match requirement—that
is, generally, for every federal dollar provided under the grant, grantees must provide one dollar
in matching funds.

The GEAR UP program regulations in 34 CFR part 694 offer GEAR UP partnership grantees
multiple flexibilities regarding this match provided they demonstrate sufficient need and receive
approval from the Department. Pursuant to section 3518(b) of the CARES Act, the Department
will also offer these same flexibilities to all GEAR UP State grantees.

The purpose of this letter is to reiterate those match waiver flexibilities and describe the process
for requesting such a waiver.

GEAR UP grantees may apply for the following match waivers:

      1. Waiver of up to 75% of the match requirement for up to 2 years (natural disaster or
         similar);
      2. Waiver of up to 50% of the match requirement for up to 2 years (matching funds no
         longer available and sources exhausted); or
      3. Waiver extension - if a grantee already has a waiver, they may request that the
         Department waive up to 50 percent of the matching requirement for a period of up to two
         years beyond the expiration of any previous waiver.




1
    See 20 USC 1070a-23(b)(1) and 34 CFR § 694.7 for a description of the matching requirement.
                                         400 MARYLAND AVE., S.W., WASHINGTON, DC 20202
                                                         www.ed.gov

         The Department of Education's mission is to promote student achievement and preparation for global competitiveness by
                                      fostering educational excellence and ensuring equal access.
The GEAR UP regulations (34 CFR § 694.9) specify what standard grantees must meet for each
type of waiver, as follows:2

    Type of Waiver                        Standard
    1 - Waiver of up to 75% of           Grantee must demonstrate that matching contributions from
    the match requirement for up         the original application are no longer available due to an
    to 2 years                           uncontrollable event, such as a natural disaster, that has a
                                         devastating economic effect on members of the Partnership
                                         and the community in which the project would operate.
    2 - Waiver of up to 50% of           Grantee must demonstrate that:
    the match requirement for up         (a) The matching contributions described for those two years
    to 2 years                               in the grantee's approved application are no longer
                                             available; and
                                         (b) The grantee has exhausted all funds and sources of
                                             potential contributions for replacing the matching funds.
    3 - Waiver Extension                 Up to 50 percent of the matching requirement for a period of
                                         up to two years beyond the expiration of any previous waiver

In determining whether the grantee has exhausted all funds and sources of potential contributions
for replacing matching funds, the Secretary considers the grantee's documentation of key factors
such as the following and their direct impact on the grantee:

      1. A reduction of revenues from State government, County government, or the local
         educational agency (LEA).
      2. An increase in local unemployment rates.
      3. Significant reductions in the operating budgets of institutions of higher education that are
         participating in the grant.
      4. A reduction of business activity in the local area (e.g., large employers have left the local
         area).
      5. Other data that reflect a significant decrease in resources available to the grantee in the
         local geographical area served by the grantee.

Grantees requesting a match waiver should specifically note which type of waiver is being
requested, the timeframe for the waiver, the amount of matching funds the waiver request, if
granted, would waive, and are encouraged to provide detailed evidence and documentation to
support their match waiver request.

Match waiver requests lacking sufficient justification may not be granted at all or may be granted
for amounts smaller or for a shorter time period than requested. Any requests must continue to
adhere to the requirement to be reasonable and necessary under Subpart E of 2 CFR part 200, the
Cost Principles of the Uniform Administrative Requirements, Cost Principles, And Audit
Requirements for Federal Awards (Uniform Guidance).


2
 State grantees should use these same categories in requesting their match waiver and tailor their request to the area
where the State GEAR UP project is providing services depending on their specific State grant (Statewide, regional,
or local).


                                                          2
If a grantee is requesting a match waiver as a result of COVID-19, the Department will entertain
the possibility of a retroactive match waiver from March 13, 2020, the date of the President’s
declaration of a national emergency due to COVID-19.

Thank you for your continued commitment to support GEAR UP participants during this time
through the ongoing delivery of services to them. Please contact your assigned program
specialist if you have any questions.

Sincerely,



Christopher J. McCaghren, Ed.D.
Deputy Assistant Secretary
Higher Education Programs




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