Coronavirus Stimulus Package FAQ: Education/Children & Families

April 1, 2020

Last week, Congress passed the Coronavirus Aid, Relief, and Economic Security Act, and it was signed into law by President Trump on Friday.

To help Connecticut residents understand the details of the bill and how it can potentially provide assistance during the COVID-19 crisis, Senator Chris Murphy's office has compiled a list of frequently asked questions. Addressed below are questions relating to education and resources for children and families (such as childcare).

For further information on the state's response to the coronavirus, visit ct.gov/coronavirus

Education

What funding is provided to K-12 schools?

  • The law provides $13.5 billion for local school districts to continue providing educational services to their students, including planning for and coordinating during long-term school closures and purchasing educational technology to support online learning.

  • Another $3 billion is available in flexible formula funding to allow Governors to address the needs of elementary and secondary schools and institutions of higher education.

Do I get relief from my student loans?

  • The CARES Act requires the Secretary of Education to defer loan payments, principal and interest, for 6 months through September 30, 2020 without penalty for the borrower for all federally held loans.

  • The law also suspends any involuntary collection for defaulted loans, such as wage garnishment, reduction of tax refunds, or Social Security benefits.

  • The law also includes a tax break for up to $5,250 for borrowers who are receiving assistance on student loan payments from their employers.

Is there additional funding for college students?

  • The law provides $14.25 billion for higher education emergency relief for colleges and universities to respond to coronavirus, including providing grants to students to cover their basic needs. 

  • Public colleges are also eligible for flexible formula funding from the Governor.

  • Students who are currently participating in the Federal Work Study program can continue to receive work-study payments from their institution if they are unable to work due to workplace closures.

  • Relief also exists for students who must drop out of school due to COVID-19. Students will have the portion of their student loan taken out for the semester canceled. Students who received a Pell Grant or subsidized student loan will not have those types of financial aid counted toward their lifetime limits.

Children and Families

Is there additional assistance for childcare and who is eligible?

  • The law provides an additional $3.5 billion for the Child Care and Development Block Grant (CCDBG) to provide child care assistance to health care sector employees, emergency responders, sanitation workers, and other workers deemed essential during the response to the coronavirus. States can use funding to provide subsidies to essential workers, reimburse providers directly, open emergency child care centers, or keep providers from going out of business.

  • The law also includes $750 million for Head Start to meet emergency staffing needs. 

  • CCDGB and Head Start funds will be distributed to the states, who will then pass them along through their own programs.

Is there assistance for social service organizations and who is eligible?

  • The law provides an additional $1 billion to the Community Services Block Grant to support a wide range of social services and emergency assistance for those who need it most. Funding goes directly to local community-based organizations (usually the area Community Action Programs), upon application.

  • The law provides an additional $5 billion for the Community Services Block Grant, which will be determined by formula.