The State of Higher Education Funding in 2024

Emerging Trends in Higher Education Funding The Higher Education sector is experiencing a significant shift in funding priorities, driven by the COVID-19 pandemic and subsequent legislative responses. The Emergency CARES Act and the Higher Education Emergency Relief Fund (HEERF) have introduced new funding streams, altering the landscape for non-profit organizations and institutions of higher education. As a result, grant seekers must navigate a complex environment where federal funding, such as the Federal TEACH Grant, intersects with institutional priorities and compliance requirements.## Navigating Compliance and Capacity in Higher Education GrantsOne concrete regulation that applies to this sector is the Higher Education Act (HEA), which governs the administration of federal student aid and other programs. Institutions and non-profits must comply with HEA requirements to remain eligible for funding. A unique delivery challenge in higher education is ensuring that emergency relief funding, such as HEERF grants, is disbursed effectively to support students and faculty. This requires robust financial management systems and compliance infrastructure, as well as the capacity to report on outcomes and expenditures.In terms of operations, higher education institutions face challenges in staffing and resource allocation, particularly when managing multiple funding streams with distinct requirements. The TEACH Grant program, for example, has specific service requirements and compliance obligations that must be met to avoid grant repayment. Effective grant management involves integrating these requirements into existing workflows and ensuring that staff have the necessary training and expertise.Risk management is also critical, as eligibility barriers and compliance traps can have significant consequences. For instance, failure to meet HEA requirements can result in loss of federal funding, while non-compliance with grant terms can lead to repayment obligations or even litigation. To mitigate these risks, institutions must carefully review grant terms and conditions, ensure accurate reporting, and maintain robust internal controls.Measuring outcomes and reporting on Key Performance Indicators (KPIs) is also a critical aspect of higher education grant management. Funder requirements, such as those specified by the Banking Institution's Grants to Support Seed Funds for New and Worthwhile Educational Programs, may include metrics related to student success, program completion, or job placement. Institutions must have the capacity to collect and report on these metrics, while also ensuring that data is accurate and reliable.## Higher Education Grant Management: FAQs for ApplicantsQ: How do I ensure compliance with the Higher Education Act (HEA) when managing federal grants? A: To ensure compliance, review the HEA requirements and integrate them into your grant management workflows. This may involve training staff on HEA regulations and ensuring that financial management systems are aligned with federal guidelines.Q: What are the key considerations when applying for emergency relief funding, such as HEERF grants? A: When applying for HEERF grants, consider the specific requirements for disbursement and reporting, as well as the need for robust financial management systems. Ensure that your institution has the capacity to meet these requirements and comply with grant terms.Q: How can I measure the success of my higher education grant program? A: To measure success, track Key Performance Indicators (KPIs) related to student success, program completion, or job placement, as required by the funder. Ensure that your institution has the capacity to collect and report on these metrics accurately and reliably.