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Dive Brief:
- The latest federal coronavirus relief package “will not be sufficient” to offset pandemic-related budget woes, Fitch Ratings said in a statement Thursday.
- Its commentary echoes a common refrain across higher education following the legislation’s passage last month. It allocated $23 billion to colleges and universities.
- The American Council on Education, the sector’s top lobbying group, has said colleges need at least $120 billion to address lost revenue and new expenses from the health crisis.
Dive Insight:
The federal funding will only address “a portion of short-term needs,” Fitch analysts wrote.
Colleges will continue to face pandemic-related expenses and offer students more financial aid, they added. The relief package also didn’t give direct aid to states, which may further reduce support to public colleges.
Those trends could result in more cuts to “programs, staff, capital and other discretionary items,” they wrote. Reductions were ongoing before Congress approved the aid package, and they are expected to continue.
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