American Rescue Plan

Governor Northam Announces $111 Million Investment to Make College More Affordable for Virginians

New funding commitment supplements $833 million going directly to Virginia higher education institutions through American Rescue Plan

BLACKSBURG—Governor Ralph Northam today visited Virginia Tech where he announced that Virginia plans to use $111 million in American Rescue Plan funding to increase access to financial aid for low- and moderate-income undergraduate students. The proposal designates $100 million for public higher education institutions through the State Council for Higher Education in Virginia, and $11 million for private institutions eligible for the Virginia Tuition Assistance Grant program.

“The economic uncertainty of this pandemic has led many to question whether a college degree was still an affordable reality,” said Governor Northam. “Our Administration has worked hard to make higher education accessible to every Virginian, and this targeted investment is a significant stride towards that goal. Increasing access to financial aid will help create more equitable pathways to opportunity and put a world-class education within reach of even more students.”

“In order for Virginia to be the best-educated state in the nation, we must continue to invest in financial aid and improve access to affordable higher education,” said Secretary of Education Atif Qarni. “It is critical that we dedicate federal relief funds to build on our past investments in financial assistance and bolster our education and talent pipelines.”

This proposed investment supplements more than $833 million that will be made available to Virginia colleges and universities through the American Rescue Plan Act’s Higher Education Emergency Relief Fund III. These funds will be received directly by institutions of higher education and must be used for financial assistance for students as well as for qualifying institutional purposes.

“Virginia’s colleges and universities rank amongst the top in the nation, and we must do everything in our power to ensure that all Virginians have equitable access to these institutions, regardless of wealth or income-level,” said Senator Mamie Locke, Chair of the Senate Finance and Appropriations Higher Education Subcommittee. “I am proud of the work that we have done in recent years to address the affordability of higher education. The dedication of these federal funds continues those efforts and is particularly impactful during these challenging times for students.”

The Governor’s proposal also commits $10 million to enhance the Online Virginia Network, which facilitates online coursework and degrees from George Mason University, Old Dominion University, James Madison University, and community colleges.

“Over the last year, we saw students delay or pause their pursuit of higher education during the COVID-19 pandemic,” said Delegate Betsy Carr, Chair of the House Appropriations Higher Education Subcommittee. “This funding signals our dedication to ensuring that students in need of financial aid are able to access it, especially as we confront the ripple effects of the COVID-19 pandemic.”

“Today, we are following through on our commitment to Virginia’s students and investing not simply in financial aid but in the Commonwealth’s future,” said Delegate Chris Hurst, member of the House Appropriations Higher Education Subcommittee. “This funding will open the doors for higher education to low- and middle-income Virginians across the Commonwealth.”

“Higher education faced numerous challenges over the past 16 months and it was an especially difficult time for our students,” said Timothy Sands, President of Virginia Polytechnic Institute and State University. “For many who were already facing financial strain, the impact of COVID-19 threatened to push their higher education dream out of reach. We are grateful to the Governor and General Assembly for these additional funds to support financial aid at this critical time, and for their continued investment in the future of our students and the Commonwealth.”

In May, Governor Northam and General Assembly leaders released a joint statement outlining shared priorities for allocating the $4.3 billion in federal funds available to the Commonwealth from the American Rescue Plan. Throughout this week and in advance of the August 2nd special session, Governor and legislative leaders are highlighting proposals for allocating these funds and have announced $250 million for school modernization and air quality improvements in school buildings, $411.5 million to reduce water pollution and increase access to clean water, $935.6 million to replenish the Unemployment Insurance Trust Fund and accelerate critical upgrades to the Virginia Employment Commission, and $485 million to strengthen Virginia’s behavioral health system.

WARNER PRESSES IRS TO FIX PROBLEMS DELAYING RELIEF CHECKS

~ Urges IRS to address three specific issues that could delay latest round of direct relief payments for some recipients ~

WASHINGTON – With more than 7 million Virginians slated to get over $9 billion in relief as a direct result of the American Rescue Plan, U.S. Sen. Mark R. Warner (D-VA) sent a letter to the Internal Revenue Service (IRS) urging the agency to ensure that families receive their promised COVID-19 stimulus payments by quickly and proactively addressing three common issues that Virginians experienced with the last round of economic impact payments (EIPs) earlier this year.

“I write today following the passage of the American Rescue Plan Act (ARPA) to raise specific issues my constituents had in accessing their second economic impact payments (EIP) in hopes those problems can be resolved and taken into consideration as the Internal Revenue Service (IRS) administers the third round of economic impact payments,” wrote Sen. Warner in his letter to Treasury Secretary Janet Yellen and IRS Commissioner Charles Rettig.

In his letter to the IRS, Sen. Warner identified the three most prevalent issues Virginia families ran into when attempting to access their second round of COVID-19 stimulus payments. The issues commonly heard from Virginians were:

  1. Couples who filed a 2019 tax return as married filing jointly who reported that only one spouse received a second EIP even though they received a joint EIP in the first round.
  2. Social Security recipients who received the first EIP via direct deposit or direct express card but did not receive the second EIP.
  3. Virginians who reported that the IRS’s Get My Payment application showed that they would either receive their payment via direct deposit or check but never received it.

During the COVID-19 crisis, Sen. Warner has been a strong advocate for Virginians, working to ensure that they get the funds to which they are entitled. Last April, he pressed the Treasury Department to ensure that families who are not normally required to file taxes do not need to wait until the following year to receive the additional $500 payment per dependent child that they were promised. He also successfully pushed the Treasury Department to allow Social Security recipients to automatically receive CARES Act direct cash assistance without needing to file a tax return.

A copy of the letter can be found here and below.

Dear Secretary Yellen and Commissioner Rettig,

I write today following the passage of the American Rescue Plan Act (ARPA) to raise specific issues my constituents had in accessing their second economic impact payments (EIP) in hopes those problems can be resolved and taken into consideration as the Internal Revenue Service (IRS) administers the third round of economic impact payments.

The Administration is well aware of the millions of Americans facing economic hardship, and should be applauded for its tireless work to deliver more relief as part of the ARPA. Further, I am appreciative of the IRS’s hard work throughout the pandemic. IRS employees have worked diligently to deliver hundreds of millions of dollars in EIPs to Americans while managing the risks associated with COVID-19.

Virginians continue to reach out with specific problems they are having, particularly those trying to access their second EIP. Below, I lay out the three most prevalent issues my staff has identified. To help me respond adequately to my constituents, please review the three issues and answer the following related questions.

  1. Couples that filed a 2019 tax return as married filing jointly are reporting that only one spouse received a second EIP even though they received a joint EIP in the first round. When the spouse not receiving the payment checked the IRS’s Get My Payment App, there was no information. Is the couple’s only recourse to claim a Recovery Rebate Credit (RRC)? Is there a reason why the second EIP was treated differently in this situation? Can the IRS take steps to ensure the same problem does not occur with the third EIP?
  2. A number of my constituents who are Social Security recipients received the first EIP via direct deposit or direct express card but did not receive the second EIP. The IRS has said those constituents can file a tax return and claim a RRC but I am concerned for those Social Security recipients who are non-filers and are less equipped to file a tax return to claim their RRC. I am also concerned that these same constituents will not receive their third EIP. Please explain why the IRS did not send the second (December) round of EIPs automatically to Social Security recipients. Will the IRS commit to sending past due checks to Social Security recipients who should have received them? For the third round of EIPs, can the IRS commit to automatically sending checks to Social Security recipients? If not, why not?
  3. Last year, the IRS created a Non-Filers tool to allow non-filers to gain access to the first round of EIPs to address this problem and make it easier for non-filers to access their EIP. Why did the IRS not reopen the Non-Filers tool to help Americans access their second EIP? Will the IRS commit to reopening the Non-Filers tool for the third round of EIP to ensure non-filers can easily access their third EIP? And will they be allowed to use this tool to claim checks owed to them from the first two rounds?

A number of constituents reported that the IRS’s Get May Payment application showed that they would either receive their payment via direct deposit or check but they never received it. Although the payment was issued to them and they qualified based on their 2019 tax return, the RRC is based on their 2020 tax filing. In some situations this has eliminated constituents’ eligibility for the second EIP. Will the IRS offer any flexibility or recourse for constituents in these circumstances?

I know the IRS is working diligently to serve the American people, and I welcome our continued collaboration to help Americans across the country. Thank you for your attention to this important issue.

Sincerely,

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